W. P. Carey Inc.--a global net lease REIT specializing in corporate sale-leaseback, build-to-suit construction financing and the acquisition of single-tenant net lease properties--announced that CPA:18 – Global has entered into an agreement to fund the development of a new hotel in Hamburg, Germany.
CPA:18 – Global will provide approximately $29 million for the construction of the property, which will be leased to the German affiliate of Melia Hotels International, S. A. for a period of 25 years upon completion. This transaction follows CPA:18 – Global's recently announced construction, funding and acquisition of an $85 million hotel in Munich, Germany.
The hotel is currently poised to open in summer 2017, and will be operated under the INNSIDE by Melia flag. The INNSIDE by Melia hotel in Hamburg will have approximately 207 rooms.
Hamburg is Germany's second largest city, with a long history of commercial and cultural vibrancy. The city is one of Europe's top destinations and attracts a strong mix of leisure and business visitors. Hotel room supply in Hamburg has grown at a cumulative average growth rate of 3.2% since 2010, while demand has increased 5.8% during the same period.