Invesco and Westmont Hospitality to Co-Invest in Hotel Properties

Main Photo: One of the Holiday Inn Express hotels in this deal (Berlin City Centre)

Date: March 2021

Location: Europe – Germany and Amsterdam

Name: IHG – Holiday Inn Express, Crowne Plaza and Holiday Inn

No. Keys: 2,816

The Partners: Invesco Real Estate has signed definitive agreements with affiliates of Westmont Hospitality Group as its strategic partner for a portfolio of 13 IHG branded hotels located in key cities in Germany as well as in Amsterdam.

As Invesco Real Estate’s strategic partner, Westmont will act as the tenant of the portfolio, as well as co-invest with Invesco’s clients in the property-owning companies. As part of the deal, significant further investment is expected to be made into eight of the thirteen Holiday Inn Express hotels across Germany and a hotel in Heidelberg, Germany. The appointment of Westmont followed a rigorous tender process run by Invesco with the support of its long-term adviser, CBRE Hotels.

David Kellett, senior director – hotel transactions, Invesco Real Estate, said, “The hotel sector has been significantly disrupted by the COVID-19 pandemic, but there remains a strong, long-term investment case for the hospitality sector as markets recover from the pandemic, driven in particular by the forecast growth in travel and tourism in Europe. This deal with Westmont is a formidable strategic partnership and underscores our focus on delivering stability and value to our investors.”

Invesco Real Estate acquired the portfolio of 13 IHG branded hotels on behalf of three mandates in 2017 for €530 million (US$638 million), one of the industry’s largest pan-European hotel sector deals at the time. The portfolio comprises mid-market hotels in gateway and strong secondary cities in Germany and the Netherlands.

Crowne Plaza Hamburg City Alster…besides the HIEX there are three CP and two Holiday Inns in the portfolio

The majority of the assets (85 percent) are in cities such as Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg and Munich, with the remaining 15 percent located in Amsterdam. The hotels are part of Invesco’s pan-European hotel footprint, with currently €1.5 billion ($1.8 billion) assets under management and 23 hotels across six countries.

Founded more than 40 years ago, Westmont owns and operates approximately 400 hotels in Europe, North America, Africa and Asia. Its portfolio includes budget hotels, aparthotels, large conference hotels, boutique hotels and luxury resorts.

“Our attractive hotel portfolio is in very good condition, and we are planning additional investment over the next few years in order to adapt to the changed market conditions. Westmont has extensive experience in managing, restructuring and repositioning hotel assets, and has owned and operated the hotels in the Invesco portfolio in the past,” said Hans-Peter Hermann, senior director – hotel asset management, Invesco Real Estate. “A partnership with a business partner of its calibre, provenance and sector understanding enables us to look with confidence in the future of the hotel sector.”

THPT Comment: The start of something bigger? Two good partners for this deal.

First Seen: Institutional Real Estate

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