Koreans Buy Hilton Vienna Park

Main Photo: The Hilton Vienna Park

Date: July 2019

Location: Vienna, Austria

Name: The Hilton Vienna Park

No. of Keys: 579…to be extended to 660 rooms under the new owners

Seller: Austrian real estate investment manager partners BETHA Zwerenz & Krause and APM Holding, represented by Investor United Benefits.

Buyer: A consortium from Korea, Mastern Invetment Management comprising Hana Financial Investment Co., NH Investment & Securities Co., and Meritz Securities Co. – acquired Hilton Vienna Park hotel in Austria for €333 million, an investment expected to deliver an annual return of 7 percent.

The Korean consortium teamed up with Wealthcore Investment Management for the purchase of the Vienna property.

The 50,000sqm property will comprise in excess of 660 rooms and 241 car spaces and is situated in Vienna’s Am Stadtpark.

Christoph Wendl, managing partner of Wealthcore Investment Management, said the property offers the Korean investors an attractive opportunity for a long-term investment in the heart of Vienna.

“With our co-investment, we further demonstrate our own commitment to the property and the market, Wendl said.

”Vienna as a hotel and congress location is prospering and continues to attract international companies, investors and tourists.“

Wealthcore, which was founded in 2018, said it is currently working on further acquisitions in office, hotel and residential asset classes in Germany, Austria, Benelux as well as the UK.

Through it’s business unit, Hana Alternative Asset Management, invested US$300m in Marriott’s New York Edition, in April 2018.

According to local investment industry sources on Wednesday, the Korean brokerage consortium will invest $170 million and have the remainder financed through local financial institutions for the $375 million acquisition.

The buyers plan to make the investment through a fund to be created by Seoul-based Mastern Investment Management, and then sell down the fund to other institutional investors. The expected return is around 7.5 percent per annum.

Hilton Vienna Park is located in the central business district of Vienna, which is a host to many international organisations, including the United Nations and OPEC. The hotel has 660 some guest rooms, the largest in Austria. Hospitality giant Hilton has been operating the hotel for nearly 40 years and last year renewed a master-lease agreement for 20 years with a 10-year tenant renewal option.

Price: €333m

Price per Key: €575,000

THPT Comment: Interesting part of the deal: The hotel plans to spend €67 million out of the new investment fund on re-modelling. The seller will be compensating for any operating losses expected to incur during the re-modelling period, which is to last for a year.

First Seen: Pulse News

The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.

For more information – Visit www.thpt.co.uk or email info@thpt.co.uk