Morgan Stanley reportedly sells 7 InterContinental hotels for €450m

EUROPE Morgan Stanley Real Estate Fund VI is selling seven InterContinental-flagged hotels in Europe for about €450 million, according to published reports.

Lebanese businessman Toufic Aboukhater is close to completing the acquisition, Reuters reports. The deal, which could be finalized next week, was originally reported by Property Week and has been independently confirmed by PropertyEU.

The portfolio comprises 2,547 guestrooms, placing the purchase price at approximately €177,000 per key. The hotels are:

  • InterContinental Amstel Amsterdam
  • InterContinental Budapest
  • InterContinental Carlton Cannes, France
  • InterContinental De La Ville Roma, Rome
  • InterContinental Frankfurt
  • InterContinental Madrid
  • InterContinental Wien, Vienna

Hotel investment firm Cedar Capital is advising Aboukhater on the deal, according to Reuters.

The Morgan Stanley fund acquired the hotels in 2008 at the top of the market via the Danube portfolio for €634 million, using roughly €450 million in debt provided by Barclays Capital, PropertyEU reports.