Schroders Capital and Capital France Hotel have completed the acquisition of a major hotel complex in Berlin.
The newly acquired assets will expand Schroders Capital’s exposure to one of the strongest markets in Europe. The complex is located on Alexanderplatz and consists of three properties: the Holiday Inn Hotel, the Indigo Hotel and the One80° Hostel, totalling 527 rooms.
The two hotels will be leased to Premier Inn, part of the Whitbread Group, and will undergo an extensive renovation program to become one of the brand’s flagships in Europe. The hostel will continue to be operated by the seller under a long-term lease agreement.
Schroders Capital’s real estate hotels team is confident tourism and corporate demand in Berlin will soon resume, while significant developments, including many residential and office spaces, are currently taking place in the vicinity of Alexanderplatz.
Capital France Hotel is a hotel investment vehicle managed by Schroders Capital’s real estate hotels team.
It already owns several hotels in Europe’s main strategic destinations, including the Pullman Bercy Paris, the Westin Palace Milan, the Saint Regis Venice, the Radisson Paris Boulogne and the Marriott Monaco Cap d’Ail.
Chris-Norman Sauer, acquisitions director Germany, Premier Inn, said: “Berlin is one of the most important target markets for us in Germany and Alexanderplatz is the centre of the capital with many important sights, restaurants and shopping opportunities in walking distance. With its great architecture and high visibility, it perfectly complements our hotel in Berlin West. We are very much looking forward to convert the two hotels into Germany’s largest Premier Inn with 403 rooms.”
Stéphane Obadia, head of investments, Schroders Capital, added: “Schroders Capital’s real estate hotels team is excited to start working with Whitbread on this first project. We have been very impressed by the success of the Premier Inn brand, first in the UK and now in Germany. Their unique know-how in hotel management and marketing has been instrumental in this achievement.”