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The largest single asset hotel deal in Germany for over 15 years
Munich, 4 March, 2015 – JLL has advised on the €158 million sale of the 381-room Le Méridien Munich hotel in central Munich on behalf of Kildare Partners and the Luxembourg based administrator of a property company owning the hotel to German open ended property fund DEKA l.
The value of the transaction represents the largest single asset hotel transaction in Germany ever after the sale of the 1,020 room Sheraton Hotel Frankfurt Airport in 1998, a transaction the JLL Hotel & Hospitality Group also advised on.
The leading upscale 381-room hotel which opened in 2002 is located opposite Munich’s main train station and offers guests easy access to the Bavarian capitals’ renowned shopping streets, museums and theatres. It is also strategically located for the international airport and the Munich trade fair. The hotel was sold on an asset deal basis, subject to the existing long-term lease agreement with Starman Hotels.
“The sale of Le Méridien Munich hotel offered investors the unique opportunity to acquire a well-established hotel in one of Europe’s best performing and most sought-after European hotel markets. The sale was a very competitive process, with strong interest from a number of cross-border investors from Europe, US and Asia. Given the underlying deal structure, this sale additionally showcases that institutional capital is getting more and more flexible as a result of the current pressure on yields.” said Sheima Salloum, Senior Vice President, JLL Hotels & Hospitality Group.
“We have advised on, bought and sold this hotel three times over the past fifteen years, and each time there has been a significant increase in price. This is due to the positive underlying market and asset fundamentals but also demonstrates why hotels as an asset class are increasingly in demand from a variety of investors,” adds Christoph Härle, CEO EMEA, JLL Hotels & Hospitality Group.
In JLL Hotel & Hospitality Group’s recent Hotel Investor Sentiment Survey, the Munich hotel real estate investment market is ranked just after major European capitals such as London and Paris for desirability.
Notes to Editors:
The hotel sale includes 381 guest rooms and suites, a restaurant, conference and meeting facilities, a spa and a tranquil court yard. Totalling approximately 26,181 square metres, thereof 22,407 square metres is the hotel. A total of 15% is lettable office and retail space.
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316.0 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $53.6 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
In Russia and CIS JLL has offices in Moscow, St. Petersburg and Kiev. JLL, Russia & CIS was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 , 2013 and 2014 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg and The Best Real Estate Consultancy in Ukraine at the Ukrainian Property Awards in 2013.
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