HVS Europe Hotel Transactions Bulletin - Week Ending 03 March 2022

Dubai Holding acquires Henderson Park’s stake in The Westin Paris - Vendôme

Dubai Holding, a state-owned investment company with operations across 13 countries, has taken 100% ownership of the 428-room The Westin Paris – Vendôme through the acquisition of Henderson Park’s stake in the hotel. Henderson Park and Dubai Holdings acquired the property in a JV together in 2018 for €550 million. The hotel, situated in an absolutely prime location in Paris’ first arrondissement, will continue its operations under The Westin branding in partnership with Marriott International and operator Sophos Hotels. Dubai Holding will reassess its strategy for the property after the 2024 Paris Olympics. Most industry observers expect that Dubai Holding’s Jumeirah Group will eventually operate the hotel, following a major renovation.

ASHG acquires the Hotel NH Schwerin in Germany and partners with Marriott

Alchemy Step Hotel Group (ASHG), a JV between Alchemy Partners and Step Partners, has acquired its third hotel, the 144-room Hotel NH Schwerin in the north of Germany. As reported in this newsletter in January this year, ASHG acquired the 177-room stays by friends Bochum in Germany, as well as the Hotel Dortmund am Technologiezentrum in February. Additionally, ASHG has signed with Marriott International as a franchise partner to rebrand and reposition the Schwerin and Dortmund properties as Courtyard hotels, and the Bochum as a Moxy hotel.

Union Investment and ICM acquire the Steigenberger Hotel in Dortmund, Germany

Germany-based Union Investment and Investa Capital Management (ICM), on behalf of their Urban Campus Nr.1 fund, have acquired the Westfalen-Center Dortmund mixed-use office and hotel property in Germany for a reported total of €65 million, from the Swiss real estate investment foundation AFIAA. The site includes a combined 30,415 sqm of lettable space, of which the 166-room Steigenberger Hotel Dortmund occupies some 22%, with the remaining 78% made up of commercial office space. The property was built in 1996, refurbished last in 2019 and is currently let out to 33 tenants, including Steigenberger. The investment is the eighth property to be added to the Urban Campus Nr.1 special fund.

Pandox acquires the Best Western Hotel Fridhemsplan in Stockholm

Swedish firm Pandox AB has acquired the 221-room three-star Best Western Hotel Fridhemsplan in central Stockholm, Sweden. Including the purchase price as well as a larger expenditure programme, Pandox’s investment in the property is estimated to total some SEK 400 million, which equates to approximately €35.2 million (€160,000 per room), with an expected stabilised yield of 7% following renovation, repositioning and a change to a new operator / tenant. The hotel is currently operated under a fixed lease with an independent operator, but is set to close towards the end of 2023 and reopen in the second half of 2024 with a new operator, lease and concept.

EXTENDAM and DG Invest acquire the ibis Toulouse Ponts-Jumeaux in France

French investment firm EXTENDAM, in partnership with DG Invest, has acquired the three-star 104-room ibis Toulouse Ponts-Jumeaux, located northwest of Toulouse’s city centre in the south of France, for an undisclosed amount. The hotel sits in the merged buildings of the former Arcade hotel and Nuit d’Hôtel hotel. The new owners plan to reposition 70 of the 104 rooms to the ibis Budget brand, while maintaining the other 34 rooms as is. EXTENDAM has over 300 mostly economy and mid-market hotels across France and Europe, totalling an asset value of €3.3 billion. DG Invest is a significant Accor franchisee in southern Europe, with a portfolio of 13 economy hotels in Spain, France and Portugal.