Hotel industry and travel news from around the European region: Platinum Estates sell future W Hotel Madrid to Millenium Hotel, ECHO Partners acquire the Ammonite Hotel in Amsterdam and more...
Platinum Estates sell future W Hotel Madrid to Millenium Hotel Real Estate
Madrid-based publicly traded hotel fund Millenium Hotel Real Estate Socimi has acquired the 136-room W Canalejas, a partly completed 5-star hotel development in Madrid, for €82 million. Including an estimated cost of €25 million still to be invested to complete the development, the price represents approximately €787,000 per room. The project is being sold by Hong Kong-based Platinum Estates, owned by the Mohinani Family, who acquired the site in 2014 for €35 million.
Maritim Hotel at Dusseldorf Airport sold to Commerz Real
Commerz Real, Commerzbank’s real estate fund manager subsidiary, has acquired the 533-room Maritim Hotel at Dusseldorf Airport for €162 million (€304,000 per room) through a sale-and-lease-back transaction. The seller of the 40,000 sqm property is Maritim Hotelgesellschaft, who will continue to operate the hotel under a 30-year lease agreement. The 4-star hotel opened in 2007, and in addition to its 533 rooms also includes six food and beverage outlets, 33 conference rooms, as well as an extensive wellness area.
Commerz Real forward funds IntercityHotel in Wiesbaden, Germany
Commerz Real has also acquired the 216-room IntercityHotel in Wiesbaden in Germany for €40 million (€185,000 per room) under a forward funding arrangement from the property’s developer, GBI AG. The hotel, which is planned to open in the first half of 2021, is adjacent to the city’s railway station and will be operated by Deutsche Hospitality under a 20-year lease agreement.
ECHO Partners acquire the Ammonite Hotel in Amsterdam
Switzerland-based hotel investor ECHO Partners has acquired the 227-room Ammonite Hotel in Amsterdam for €40 million (€176,000 per room). Located in Amsterdam’s southern border in the Amstelveen district, the hotel opened in mid-2018 and has been unbranded so far. The hotel, which is Echo Partners’ fourth hotel acquisition in the last six months, will be operated under a 20-year lease contract reflecting a reported yield of 7%.
Huazhu Group to acquire Deutsche Hospitality for €700 million
Huazhu Group, the Nasdaq-listed hotel operator and fifth largest public hotel company globally, has agreed to buy Germany-based hotel operator Deutsche Hospitality for approximately €700 million (before closing adjustments) from the Egyptian travel and tourism company Travco Group. Deutsche Hospitality currently operates 118 hotels, with a pipeline of a further 36, under its Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotels brands.
The Deutsche Hospitality platform will join Huazhu’s more than 5,000 existing leased, managed or franchised hotels. While the transaction represents Huazhu’s first major international acquisition, the group already have an existing master franchisee and cross-shareholding relationship with Accor. Huazhu’s largest shareholder is its founder and executive chairman Qi Ji, with Accor owning 10.5% of the group. In turn, Huazhu owns 4.9% of Accor and is the master franchisee of a number of Accor brands in the pan-China region.
Midstar acquires Admiral Hotel Copenhagen from CAH Holding
CAH Holding A/S, a consortium of former SAS airline captains and their heirs, has entered into an agreement to sell the Copenhagen Admiral Hotel to Swedish hotel investor Midstar AB. The 366-room hotel, which is currently going through a renovation, is situated in a prime location in the centre of Copenhagen and will continue to be operated by Basalco A/S.
