Al Zaman Group Buys Invesco’s Intercity Hotels Portfolio in Germany

Date: March 2018

Location: Darmstadt, Mainz, Rostock and Frankfurt Airport, Germany

Name: Intercity Hotels – three and four star

IntercityHotel Mainz

No. of Keys: 868

Seller: Real estate investment manager Invesco Real Estate. DLA Piper Munich acted as legal advisors for Invesco Real Estate. Inescot was advised by JLL.

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. Paul Hastings and PwC advised Invesco during the transaction while Eastdil Secured advised Apollo Global.

Buyer: An Oman-based investment group led by Al Zaman Group. The hotels will join Al Zaman Group’s IntercityHotel in Enschede, Netherlands, the first Dutch hotel of the brand, operated by Deutsche Hospitality.

Al Zaman is strategic investor in various industries including Petrochemicals, Financial Services, Telecom and Shipping, Tea Plantations and bespoke & Luxury goods in the UAE, UK, Italy and Singapore.

They have an interest in Summit Hotel Properties LLC, who have a portfolio of 83 hotels with a total of 12,242 guestrooms located in 26 US states.

Deutsche Hospitality operates these hotels through 30-year hybrid leases.

The group’s plan is to invest in hotels that are new or recently renovated and operated by an established international operator in central locations through long-lease income models.

Hotel development and consulting specialist Feuring advised Zaman Group on the acquisition.

Zaman Group chose Feuring because the group had prior knowledge of the assets in the portfolio due to its role in the previous sale of the same hotels in 2014 to Invesco.

Invesco bought these properties from a UK institutional investor as part of a European long-lease strategy.

The specialist also introduced Al Zaman to Invesco and the portfolio. Now, Feuring will be the asset manager of the portfolio.

Kucera Rechtsanwälte Darmstadt and DLA Piper Amsterdam acted as legal advisors for Zaman Group

Price: Undisclosed

THPT Comment: Interesting movement at Invesco – a buyer in 2017 and a seller in 2018

First Seen: Hotel Management