Global real estate investment manager Invesco Real Estate has inked a strategic partnership deal with affiliates of Westmont Hospitality Group, one of the largest private hotel property owners and operators in the world.
The two firms will partner across a portfolio of 13 IHG-branded hotels located in key cities in Germany and in Amsterdam, the Netherlands. Westmont will act as the tenant of the portfolio, as well as co-invest with Invesco’s clients in the property-owning companies.
As part of the deal, significant further investment is expected to be made into eight Holiday Inn Express hotels in Germany and a hotel in Heidelberg. The appointment of Westmont followed a tender process run by Invesco with the support of its long-term adviser, CBRE Hotels.
Westmont was selected by Invesco due to its outstanding investment track record, strong focus on long-term partnerships, the quality and depth of its operations and its success in restructuring and repositioning assets.
David Kellett, senior director – hotel transactions, 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 recover 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.'
Invesco acquired the portfolio of 13 IHG branded hotels on behalf of three mandates in 2017 for €530 mln, one of the industry’s largest pan-European hotel sector deals at the time.
The majority of the assets (85%) are located in Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg and Munich, with the remaining 15% located in Amsterdam. The two hotels in the Dutch capital - a Holiday Inn and a Crowne Plaza in Hoofddorp near the city - were previously operated by Tidal Operations, which went bankrupt in 2020.
Sabine Lüftenegger, director, CBRE Hotels Germany, added: 'To have supported Invesco in identifying and selecting a new tenant for this well-known hotel portfolio in Germany and the Netherlands was a rewarding experience, especially during these challenging times.
'The hotels are very well located and alongside the extension renovation plans, this makes them ideally positioned to benefit from the recovery of the hotel market in the coming years.'
Founded over 40 years ago, Westmont owns and operates approximately 400 hotels in Europe, North America, Africa and Asia. Its portfolio ranges from budget and aparthotels, large conference hotels to boutiques and luxury resorts.
Invesco’s pan-European hotel portfolio currently totals €1.5 bn and spans 23 hotels across six countries.
On this transaction, Invesco was advised by CBRE Hotels, PWC, Taylor Wessing and GvW Graf von Westphalen. Westmont was advised by Hogan Lovells.
