Al Zaman Group buys Invesco's IntercityHotels portfolio in Germany

IntercityHotel Frankfurt Airport, Germany. Photo credit: Deutsche Hospitality(Image: Deutsche Hospitality)

An Oman-based investment group led by Al Zaman Group has acquired a portfolio of four IntercityHotels in Germany from real estate investment manager Invesco Real Estate for an undisclosed price.

The hotels will join Al Zaman Group's IntercityHotel in Enschede, Netherlands, the first Dutch hotel of the brand, operated by Deutsche Hospitality. The group's plan was to invest in hotels that are new or recently renovated and operated by an established international operator in central locations through long-lease income models.  

The properties are in the cities of Darmstadt, Mainz, Rostock and at Frankfurt Airport. Deutsche Hospitality also operates these hotels through 30-year hybrid leases. They will increase Zaman Group’s room inventory total to approximately 1,000. 

Hotel development and consulting specialist Feuring advised Zaman Group on the acquisition. Zaman Group chose Feuring because the group had prior knowledge of the assets in the portfolio due to its role in the previous sale of the same hotels in 2014 to Invesco. Invesco bought these properties from a UK institutional investor as part of a European long-lease strategy. The specialist also introduced Al Zaman to Invesco and the portfolio. Now, Feuring will be the asset manager of the portfolio.

Kucera Rechtsanwälte Darmstadt and DLA Piper Amsterdam acted as legal advisors for Zaman Group while DLA Piper Munich acted as legal advisors for Invesco Real Estate. In addition, JLL also advised Invesco Real Estate on the sale.

Invesco’s sale follows its acquisition of 13 European hotels worth €530 million in September 2017 from funds managed by associates of Apollo Global Management. Invesco bought the portfolio of assets across Germany and the Netherlands on behalf of the European Hotel Fund and two separate account mandates. Eighty-five percent of the hotels are in Germany while the remaining 15 percent are in Amsterdam. Paul Hastings and PwC advised Invesco during the transaction while Eastdil Secured advised Apollo Global.