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Hotels and hospitality groups
"We have found a reliable and business-oriented hospitality partner with Deutsche Hospitality," commented Zaman Group's Chairman Mohammed Zaman. "This transaction contributes positively to the planned growth of our hospitality-led investment portfolio."
An Oman-based investor group led by Al Zaman Group has bought a portfolio of four IntercityHotels across Germany from Invesco Real Estate (IRE) for an undisclosed amount.
The hotels in Mainz, Darmstadt, Rostock and Frankfurt Airport were bought by IRE in 2014 for €80m on behalf of a UK institutional mandate. The hotels are operated on the basis of 30-year hybrid lease agreements. The InterCity brand targets business and city travellers plumping to stay at city centres and nearby airports.
The Zaman Group is a diversified organization with investments and operating businesses in real estate in the Middle East, Europe and in Asia. The group is also significantly invested in hospitality, retail, telecommunication, oil & gas, shipping & logistics, financial services, insurance and bespoke luxury industries.
As owner of the first Dutch IntercityHotel, located in Enschede, Netherlands, Zaman Group is well acquainted with the IntercityHotel brand, the company said. IntercityHotels is the 3-4 star select service brand of Deutsche Hospitality.
"We have found a reliable and business-oriented hospitality partner with Deutsche Hospitality," commented Zaman Group's Chairman Mohammed Zaman. "This transaction contributes positively to the planned growth of our hospitality-led investment portfolio."
According to the group's Acting Head of European Real Estate, Tawfiq al Muzaddid, "Our investment strategy has focused on new or recently renovated hotel assets operated by an established international operators in central locations offering stabilized incomes under long-lease income models. Hence, the acquisition of a further four IntercityHotels came as a strategic fit for our portfolio taking the total room count to nearly one thousand. We now remain committed to adding value to the portfolio through further development and acquisitions."
Hans-Peter Hermann, Senior Director – Asset Management Hotels at Invesco Real Estate commented: "Following active management of the assets and having exceeded our client's objectives, the timing was optimal for us to sell these assets. We are delighted to be able to provide Zaman Group with four hotels in an excellent state of repair and successfully leased to a well-known hotel operator. We plan to further expand our footprint in the hotel sector on behalf of our existing investment mandates".
Hotel development and consulting specialist Feuring acted as transaction and industry adviser to the Zaman Group on the strength of its role in the previous portfolio deal involving the same assets, and will take over the role as future asset manager of the portfolio.
Invesco’s sale follows its acquisition of 13 European hotels worth €530 million in September 2017 from funds managed by associates of Apollo Global Management. Invesco bought the portfolio of assets across Germany and the Netherlands on behalf of the European Hotel Fund and two separate account mandates. Eighty-five percent of the hotels are in Germany, while the remaining 15 percent are in Amsterdam.
