WP Carey provides €76m funding for Munich hotel project

US-based REIT WP Carey has agreed a €76 mln funding package to finance the completion of an upscale hotel in central Munich.

The 290-bed facility is being developed by Liran Wizman, co-founder of Grand City Hotels, Germany’s second largest hotel management company. The new funding is being provided by WP Carey’s CPA:18 – Global fund.

On completion the hotel will be operated and managed by boutique hotels specialist Europe Hotels – Private Collection, where Wizman is CEO, on a 20-year lease.

WP Carey said rising hotel demand in Munich, which has increased by 6% a year since 2003, and the city’s occupancy rate of 77% made the German city attractive to investors.

Arvi Luoma, Executive Director of WP Carey, said: ‘This transaction offered the opportunity for CPA:18 –
Global to secure a high-quality hotel property in Germany’s wealthiest city at attractive pricing.’