PATRIZIA acquires hotel property in Augsburg
PATRIZIA Immobilien AG purchased a hotel property in central Augsburg that was built in 2012. The three star hotel, Holiday Inn Express Augsburg, has 136 rooms, is located at the edge of the old town, and has been leased long-term.
“With an experienced operator and a long-term lease, the hotel property which is located in an economically strong region with a consistently growing population and tourism, constitutes an ideal investment for our clients“, explains Jan-Hendrik Jessen, Head of Fund Management Operated Properties at PATRIZIA. The hotel was acquired for the real estate fund „PATRIZIA Hotel-Invest Deutschland I“. The seller is a private owner. The parties have agreed to keep the purchase price confidential.
The five-story hotel building located on the Nagahama Allee at the Eastern edge of Augsburg’s old town has a gross floor area of approximately 5,200 square metres. The hotel has been leased to Success Hotel Management GmbH for 20 years. This company, which was founded in 1995, currently operates 13 hotels with a total of almost 1,500 rooms, most of which are in Southern Germany. The company is planning to open another nine hotels in the next few years. As a franchisee, the company manages the hotel under the brand name Holiday Inn Express of the Intercontinental Hotels Group. The lease includes two options for extensions of five years each. The Augsburg hotel market has developed extremely well in the past few years and was able to post record results for the number of overnight stays for the sixth time in 2015.
PATRIZIA currently manages hotel property assets in the amount of approximately EUR 600 million.
"PATRIZIA has been consistently expanding its investments in this asset class for the past few years“, reports Jessen. Investments in operator-run properties such as hotels offer particularly good yield opportunities, but also require special knowledge. As one of the leading European real estate investment companies, PATRIZIA has this knowledge and offers institutional investors the opportunity to invest in special-purpose real estate that requires special expertise.