Art-Invest Real Estate Acquires Leonardo Royal Berlin Alexanderplatz

Main Photo: The Leonardo Royal Berlin Alexanderplatz

Date: August 2020

Location: Alexanderplatz, Berlin, Germany

Name: The Leonardo Royal Berlin Alexanderplatz

No. Keys: 346

Seller: Fattal Hotel Group

Buyer: Art-Invest Real Estate is acquiring the Leonardo Royal Berlin Alexanderplatz from the Fattal Hotel Group for its AIREF Hotel-Manage to Core fund as part of a sale-and-lease-back transaction. As part of a 25-year lease, the property will continue to be operated by Leonardo Hotels, which belong to the listed hotel company Fattal Hotel Group, under the “Leonardo Royal” brand.

The hotel is within walking distance of Alexanderplatz and the vibrant Prenzlauer Berg district. It has an area of ​​around 18,500 m² and comprises 346 rooms, 11 conference rooms, a restaurant, a bar, a fitness and sauna area and an underground car park. The listed building was originally built in 1956 as an administration building and served as the headquarters of the Federal Police. In 2009 it was transformed into a Leonardo Royal Hotel as part of a major renovation.

Dr. Peter Ebertz, Managing Director and Head of Hotels at Art-Invest Real Estate, emphasises: “We are delighted to have implemented a forward-looking transaction together with the Fattal Hotel Group in this challenging time for the hotel industry.

We are convinced that tourism and business demand will recover in the medium term – especially in Berlin. In the next few months, we will also work with the operator to refresh the hotel product in a targeted manner in order to participate in the recovery of the market as best as possible. ”

“The Leonardo Royal Berlin Alexanderplatz is one of our leading hotels in the capital. We are pleased that with Art-Invest Real Estate we have been able to win a strong and experienced partner for us who has recognised the promising potential of this house. The extensive planned innovations will make a significant contribution to ensuring that the Leonardo Royal will continue to be an established and popular hotel address on the Berlin hotel market in the future, ”says David Fattal, Chairman and CEO of the Fattal Hotel Group.

Art-Invest Real Estate received legal advice from GSK Stockmann and technical advice from SMV Bauprojektsteuerung. Eastdil was commissioned with the marketing by the seller. Hotel advice was provided by CBRE Hotels. On the part of the seller, the legal advice was provided by Norton Rose Fulbright.

In the hotel segment, Art-Invest Real Estate manages a portfolio of approx. 30 hotels in several investment vehicles with a total volume of €1 billion. The focus is on business hotels in Germany and in attractive tourist destinations in Europe. The specialised hotel team of around 20 experienced employees covers the entire value chain of hotel investments, from turnkey development and investment to the operation of branded hotels.

Art-Invest Real Estate is currently developing six new hotels with over 1,200 rooms and 60,000 m² of gross floor area. They have franchise licenses from Marriott and InterContinental.

The Fattal Hotel Group is owned by the Fattal family (63.65%) and was founded by David Fattal in March 1999. The brand portfolio includes: Herods, U Hotels, Leonardo Hotels, Jurys Inn, NYX Hotels and Apollo Hotels.

THPT Comment: A good move for both parties.

First Seen: Art Invest press release

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