Invesco Real Estate partners with Westmont on portfolio of 13 hotels in Gremany and the Netherlands
Invesco Real Estate (Invesco) has signed definitive agreements with affiliates of Westmont Hospitality Group (Westmont) as its strategic partner for a portfolio of IHG branded hotels located in key cities in Germany and in Amsterdam, the Netherlands.
As Invesco’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 Holiday Inn Express hotels in Germany and a hotel in Heidelberg. The appointment of Westmont followed a rigorous tender process run by Invesco with the support of its long-term adviser, CBRE Hotels.
Westmont was selected by Invesco due to its outstanding investment track record, strong focus on long-term partnerships, the quality and depth of its operations and its success in restructuring and repositioning assets.
David Kellett, Senior Director – Hotel Transactions, Invesco Real Estate, says: “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 recovers 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 acquired the portfolio of 13 IHG branded hotels on behalf of three mandates in 2017 for EUR530 million, one of the industry’s largest pan-European hotel sector deals at the time. The portfolio is comprised of mid-market hotels in gateway and strong secondary cities in Germany and The Netherlands. The majority of the assets (85 per cent) are in cities such as Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg and Munich, with the remaining 15 per cent located in Amsterdam. The hotels are part of Invesco’s pan-European hotel footprint with currently EUR1.5bn AUM and 23 hotels across six countries.
Founded over 40 years ago, Westmont owns and operates approximately 400 hotels in Europe, North America, Africa and Asia. Its portfolio ranges from budget and aparthotels, large conference hotels to boutiques and luxury resorts.
Hans-Peter Hermann, Senior Director – Hotel Asset Management, Invesco Real Estate, comments: “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. 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.”
On this transaction, Invesco was advised by CBRE Hotels, PWC, Taylor Wessing and GvW Graf von Westphalen. Westmont was advised by Hogan Lovells.