Danish pension fund ATP and a Dutch institutional investor have joined forces to buy a German hotel for €187.5m.
The four-star Hotel Holiday Inn Munich City Centre is leased on a long-term contract to the operator, the German-based Event Hotel Group.
Michael Nielsen, chief executive of ATP Real Estate, said: “We see the Munich hotel investment as a great opportunity to leave another footprint in the German real estate market.
“The asset’s prime location will ensure a stable return on a long-term basis benefitting our members.”
The hotel is located in the Haidhausen district of Munich, close to the historic city centre as well as the S-bahn.
It has 582 rooms, conference facilities, lunch and breakfast restaurant and underground parking facilities.
It was built in 1973, fully refurbished between 2004 and 2006. ATP said there were plans to renovate the rooms over the next three years.
In a separate announcement, Invesco Real Estate said it had acquired a pan-European hotel portfolio for €530m on behalf of a fund and two separate accounts.