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Management of the PATRIZIA Hotel-Invest Germany I

Type of Transaction: Funds and Separate Accounts
Strategy: Core
Geographic Focus: Building a German real estate portfolio featuring hotel assets (2-to-4-star) in major cities and conurbations with favorable growth prospects
Transaction Volume: Initial target fund volume was set at up to €300m (€150m equity); capital base of the special fund was later increased twice by adding equity in the amount of €50m each time, bringing fund equity to a total of €250m
Management Approach:
  • Acquisition and management of hotel assets in major cities exclusively located in Germany
  • Investment in stock properties and property developments
  • Strong geographic diversification
  • Leased to hotel operators with strong to excellent covenants
  • Operator diversification: maximum 20% of one operator in target portfolio
  • Modern, high-quality properties
  • Ideal size between 80 and 300 hotel rooms depending on hotel category
  • Investor-oriented leasehold agreements (terms of around 15 years)
  • Target long-term return for this special fund is over 6%

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