Warimpex JV finalises Warsaw hotel sale to Deka

Joint owners Warimpex and developer UBM have concluded the sale of Warsaw's flagship InterContinental hotel to Germany’s DekaBank for over EUR 100 mln, the companies said on Friday. The transaction, first announced at end-October, is the largest hotel deal ever in Poland.

Warimpex said the sale price can still rise depending on the performance of the hotel.

Warimpex and UBM jointly developed the 45,000 m² property and will lease the hotel back under the InterContinental brand until 2027. Each owns a 50% stake in the five-star, 414-room hotel.

Deka will add the property to its WestInvest Interselect fund, boosting its exposure to hotel assets to 11% and further diversifying its portfolio. 'Due to the stable economic climate, investing in Poland generates sustainable earnings and offers value creation potential,' the buyer said.

UBM CEO Karl Bier said he was pleased to be able to participate in the future development of the hotel: 'By retaining ownership of the operating company until 2027, we have secured future profit potential,' he said.

Warimpex Finanz- und Beteiligungs is a real estate investment and development company headquartered in Vienna and listed on the stock exchanges of Vienna and Warsaw. It claims to be one of the largest hotel investors in Central and Eastern Europe, owning or operating 20 hotels with over 4,800 rooms.