JLL has advised on the €158 million sale of the 381-room Le Méridien Munich hotel in central Munich on behalf of Kildare Partners and the Luxembourg based administrator of a property company owning the hotel to German open ended property fund DEKA l.
The value of the transaction represents the largest single asset hotel transaction in Germany ever after the sale of the 1,020 room Sheraton Hotel Frankfurt Airport in 1998.
The leading upscale 381-room hotel which opened in 2002 is located opposite Munich’s main train station and offers guests easy access to the Bavarian capitals’ renowned shopping streets, museums and theatres. It is also strategically located for the international airport and the Munich trade fair. The hotel was sold on an asset deal basis, subject to the existing long-term lease agreement with Starman Hotels.
“The sale of Le Méridien Munich hotel offered investors the unique opportunity to acquire a well-established hotel in one of Europe’s best performing and most sought-after European hotel markets. The sale was a very competitive process, with strong interest from a number of cross-border investors from Europe, US and Asia. Given the underlying deal structure, this sale additionally showcases that institutional capital is getting more and more flexible as a result of the current pressure on yields.” said Sheima Salloum, Senior Vice President, JLL Hotels & Hospitality Group.
“We have advised on, bought and sold this hotel three times over the past fifteen years, and each time there has been a significant increase in price. This is due to the positive underlying market and asset fundamentals but also demonstrates why hotels as an asset class are increasingly in demand from a variety of investors,” adds Christoph Härle, CEO EMEA, JLL Hotels & Hospitality Group.
Source: JLL EMEA