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JLL advises on the 158 million euros sale of Le Meridien Munich hotel

The largest single asset hotel deal in Germany for over 15 years.

MUNICH – JLL has advised on the 158 million euros sale of the 381-room Le Meridien Munich hotel in central Munich on behalf of Kildare Partners and the Luxembourg based administrator of a property company owning the hotel to German open ended property fund DEKA l.

The value of the transaction represents the largest single asset hotel transaction in Germany ever after the sale of the 1,020 room Sheraton Hotel Frankfurt Airport in 1998, a transaction the JLL Hotel & Hospitality Group also advised on.

The leading upscale 381-room hotel which opened in 2002 is located opposite Munich’s main train station and offers guests easy access to the Bavarian capitals’ renowned shopping streets, museums and theatres. It is also strategically located for the international airport and the Munich trade fair. The hotel was sold on an asset deal basis, subject to the existing long-term lease agreement with Starman Hotels.

“The sale of Le Meridien Munich hotel offered investors the unique opportunity to acquire a well-established hotel in one of Europe’s best performing and most sought-after European hotel markets. The sale was a very competitive process, with strong interest from a number of cross-border investors from Europe, US and Asia. Given the underlying deal structure, this sale additionally showcases that institutional capital is getting more and more flexible as a result of the current pressure on yields” said Sheima Salloum, Senior Vice President, JLL Hotels & Hospitality Group.

“We have advised on, bought and sold this hotel three times over the past fifteen years, and each time there has been a significant increase in price. This is due to the positive underlying market and asset fundamentals but also demonstrates why hotels as an asset class are increasingly in demand from a variety of investors,” adds Christoph Harle, CEO EMEA, JLL Hotels & Hospitality Group.

In JLL Hotel & Hospitality Group’s recent Hotel Investor Sentiment Survey, the Munich hotel real estate investment market is ranked just after major European capitals such as London and Paris for desirability.

Also, JLL has exclusively advised on the sale of a portfolio of 22 B&B-branded hotels throughout Germany on behalf of The Carlyle Group to the French REIT Fonciere des Murs. The 2,271-key portfolio was sold at a price of 128 million euros subject to long-term lease agreements with the B&B Group. “This deal underlines the strong interest in the budget segment and investors’ continuous trust in the German hotel market”, said Ursula Kriegl, Executive Vice President, JLL Hotels & Hospitality Group.

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Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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