Invesco Real Estate (IRE), announced that it has acquired a portfolio of four mid-market InterCityHotels across Germany on behalf of a new UK institutional mandate. This is the first acquisition IRE has made for the new mandate, which is focused on investing in long-leased, income-oriented assets.
IRE has purchased the InterCityHotels in Darmstadt, Mainz, Rostock and at Frankfurt Airport, being the largest investment, with 30-year hybrid leases with Steigenberger Hotels AG, a German hotel company which has a strong presence and high brand recognition domestically. The four hotels acquired come under Steigenberger’s InterCity mid-market brand, which targets business and city travelers staying at city centers and airport hotels. The hotels were an off-market transaction involving three individual vendors.
Marc Socker, Senior Director, Hotel Fund Management comments: “We are delighted to have secured this portfolio for our client, which fits the mandate’s criteria well by focusing on strong real estate fundamentals of income-oriented hotel investments in strategic, highly accessible locations, on long-term leases with high brand recognition, an important feature within the hotel industry.
“Our research suggests that the German hotel market is currently one of the strongest hotel real estate investment markets in Europe, thus cementing our decision to buy what we believe are the right assets in the right market, at the right time. The acquisitions also benefit from local demand growth, and the added benefit of large conference facilities.”
Invesco Real Estate was advised by CBRE Hotels on this transaction. German hotel developer Feuring partnered with Steigenberger on the transaction, contributing their hotels in Darmstadt and Mainz to create the InterCity portfolio.
Source: Invesco Real Estate