- Three star, 5,611 sq m hotel comprising 164 rooms
- Operated under Holiday Inn Express brand
- Asset produces long-term income and offers future development potential
Augsburg, 17 July 2019. PATRIZIA AG, the global partner for pan-European real estate investment, announces that it has acquired a fully let hotel in Düsseldorf, Germany, from DERECO.
The 5,611 sq m hotel, which comprises 164 rooms over six floors and 46 underground car parking spaces, is fully let to Foremost Hospitality HIEX GmbH, the hotel and franchise business, on a lease with 20 years.
The three-star hotel, which opened in 2015, is operated by the Holiday Inn Express limited service brand (HIEX), a franchise of InterContinental Hotels Group, one of the world’s largest hotel chains. In 2018 Foremost Hospitality HIEX GmbH was taken over by Premier Inn, a daughter company of UK’s leading hotel chain Whitbread. Within the next two years the hotel will be changed into a Premier Inn Hotel.
Occupying a central location in Düsseldorf, one of Germany’s strongest economic regions, the asset is well connected by road and is approximately 20 minutes’ drive from Düsseldorf Airport.
This transaction increases the hotel investments PATRIZIA manages across Europe to appr. €900 million.
Douglas Waibel, Associate Director Transactions at PATRIZIA, commented: “Situated in one of Germany’s largest hotel markets, this transaction is a strong addition to our portfolio. Income producing from day one, the asset provides a sustainable, long term income stream with an opportunity to enhance this through the relaunch of the operation under the brand of Premier Inn, UK’s best performing hotel chain Whitbread. As its track record demonstrates, the hotel, which has been operating for a number of years, is well positioned to meet the continued demand for mid-priced accommodation operated by a brand which appeals to both business and leisure travellers.”
PATRIZIA AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages more than EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
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