Invesco, Westmont Hospitality to co-invest in hotel properties

Invesco Real Estate has partnered with hotel group Westmont Hospitality to co-invest in hotel properties.

Invesco has agreed to make Westmont its partner for a portfolio of IHG branded hotels located in cities in Germany and in Amsterdam, the Netherlands.

Invesco acquired the portfolio of 13 IHG branded hotels on behalf of three mandates in 2017 for €530m.

As part of the partnership, Westmont will act as the tenant of the portfolio, as well as co-invest with Invesco’s clients in the property-owning companies.

The duo also expect to make further investment into eight Holiday Inn Express hotels in Germany and a hotel in Heidelberg.

David Kellett, a senior director – hotel transactions at Invesco Real Estate, said: “The hotel sector has been significantly disrupted by the Covid-19 pandemic, but there remains a strong, long-term investment case for the hospitality sector as markets recovers from the pandemic, driven in particular by the forecast growth in travel and tourism in Europe.

“This deal with Westmont is a formidable strategic partnership, and underscores our focus on delivering stability and value to our investors.”

Hans-Peter Hermann, senior director – hotel asset management at Invesco Real Estate, said: “Our attractive hotel portfolio is in very good condition, and we are planning additional investment over the next few years in order to adapt to the changed market conditions.

Westmont has extensive experience in managing, restructuring and repositioning hotel assets and has owned and operated the hotels in the Invesco portfolio in the past. A partnership with a business partner of its calibre, provenance and sector understanding enables us to look with confidence in the future of the hotel sector.”

On this transaction, Invesco was advised by CBRE Hotels, PWC, Taylor Wessing and GvW Graf von Westphalen. Westmont was advised by Hogan Lovells.

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