French REIT Foncière des Régions (FdR) has extended its partnership with NH Hotel Group, inking a deal to buy four hotels in Germany and the Netherlands from the hospitality firm for €111 mln.
The 4-star properties are located in Berlin, Hamburg, Amsterdam and Amersfoort, and were built or renovated after 2006, with a total of 637 rooms.
Spain-headquartered NH Hotel Group will continue to operate the hotels, which will have 20-year leases at variable rents with a guaranteed minimum. FdR said it would become NH Hotel Group's lessor of reference with this deal, bringing its ownership to 11 NH properties in Europe.
'Our recognised know-how has enabled Foncière des Régions to be today one of the largest institutional investors worldwide in hotel real estate,' commented Dominique Ozanne, CEO Hotels FdR.
'With this 3rd joint operation, we are entering a new phase in our partnership with NH Hotel Group, initiated in 2014,' added Ozanne.
The NH Hotel Group operates nearly 400 hotels with close to 60,000 rooms, in 31 countries across Europe, America and Africa, in cities such as Amsterdam, Barcelona, Berlin, Bogotá, Brussels, Buenos Aires, Dusseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.
'The operation is in line with our strategy of maximizing profitability through a leading and efficient hotel management model, while at the same time taking advantage of opportunities to fine-tune the group’s asset structure and boost growth through an asset-light agreements,' said Ramón Aragonés, CEO of NH Hotel Group.
'In this sense we hope that our partnership with Foncière des Regions will help us continue consolidating our presence in current markets and open doors in other key destinations in which we wish to increase significantly our presence such as France or UK,' he added.
The final acquisitions are expected to close between the end of 2018 and the start of 2019.
