Invesco acquires two new Berlin hotels

Invesco Real Estate has acquired two newly built 4-star hotels at Berlin’s Alexanderplatz for €60 million (US$79.1 million) in a sale and leaseback acquisition with Azure Property Group. The 242-room Holiday Inn and 153-room Indigo hotels brings to 25 the total number of hotels Invesco now has under management within its two dedicated hotel funds, with eight assets within the firm’s second hotel fund portfolio.

The two hotels, which opened on May 1, are long-let on two 20-year hybrid lease agreements to Azure Property Group, an established international operator who will operate the hotels under franchise agreements with InterContinental Hotels Group.

“We are delighted with the acquisition of these hotels, which are well located at Alexanderplatz, a strong and upcoming location in the heart of Berlin,” said Marc Socker, Invesco’s director – hotel fund management. “Our investment focus is always on the fundamentals; that is high quality, mid-market hotels, good investment lot sizes, strategic location, brand strength, high operator expertise and the long lease terms. This acquisition ticks all of these boxes in addition to providing diversification to the portfolio in terms of geographic location, as Berlin is one of Germany’s most dynamic hotel markets and this is our first investment here.”

Invesco’s dedicated European hotel funds currently own, in total, 25 mid-market hotels with over 5,500 rooms across Europe with total assets under management of €925 million (US$1.2 billion).