W. P. Carey Inc. announced that CPA®:18 – Global has entered into an agreement to fund the completion of a new upscale lifestyle hotel in Munich, Germany. CPA®:18 – Global will provide approx. €76 mLn to complete the construction of the hotel, which will be leased for a period of 20 years.
The hotel will be a full-service 290-room upscale hotel catering to both business and leisure travelers, as well as the local community. Amenities will include a spa and fitness center, conference facilities, underground parking, a bar and a modern restaurant concept developed by the Entourage Group—a food and beverage service provider for hospitality venues.
The hotel development is being undertaken by Mr. Liran Wizman, co-founder and major shareholder of Grand City Hotels, the second largest hotel management company in Germany. Upon completion, the hotel will be managed by Mr. Wizman’s company, Europe Hotels | Private Collection, which has considerable experience managing boutique lifestyle hotels in Europe including the SIR and Max Brown brands.
Hotel demand in Munich has increased at a 6% compound annual growth rate since 2003. Considered Germany’s wealthiest city, Munich is among its most popular tourist destinations and has an average hotel occupancy rate of 77%, compared to 68% for Germany overall.
Source: W.P. Carey