Investment manager Invesco Real Estate (IRE) has acquired a portfolio of four mid-market InterCityHotels across Germany on behalf of a new UK institutional mandate.

Investment manager Invesco Real Estate (IRE) has acquired a portfolio of four mid-market InterCityHotels across Germany on behalf of a new UK institutional mandate.

It is the first acquisition IRE has made for the new mandate, which is focussed on investing in long-leased, income-oriented assets.

The hotels were purchased in off-market transactions involving three individual vendors and representing a combined investment of €80 mln.

The properties are located in the cities of Darmstadt, Mainz, Rostock and at Frankfurt Airport (the largest investment), with 30-year hybrid leases with Steigenberger Hotels, a German hotel company.

The four hotels operate under Steigenberger’s InterCity mid-market brand, which targets business and city travellers staying at city centres and airport hotels.

'Our research suggests that the German hotel market is currently one of the strongest hotel real estate investment markets in Europe, thus cementing our decision to buy what we believe are the right assets in the right market, at the right time,' commented Marc Socker, senior director of hotel fund management.

Invesco Real Estate was advised by CBRE Hotels. German hotel developer Feuring partnered with Steigenberger on the transaction, contributing their hotels in Darmstadt and Mainz to create the InterCity portfolio.