France's Foncière des Régions buys five German NH Hotels

French real estate company Foncière des Régions has acquired five NH Hotels in Germany for €125 million ($138.36 million) 

“After the 2014 acquisition, in a sale-and-lease-back transaction, of the NH Amsterdam Centre hotel in The Netherlands, today Foncière des Régions strengthens its partnership with the Madrid Stock Exchange-listed NH Hotel Group,” the company announced in a statement. Foncière des Régions acquired the purchase options for five hotels located in Düsseldorf, Frankfurt, Nuremberg, Oberhausen and Stuttgart, currently operated by Spain’s NH Hotel Group. The combined hotels have a total of 900 rooms. 

“Régions exercised these options to buy the assets and will keep the NH brands to continue operating in these hotels under new lease agreements with NH Hotel Group,” the company said. “The final acquisitions of the hotels will occur in 2017 and represent a total investment of €125 million.” These assets will be leased by NH Hotel Group for a 20-year period under a variable lease with a minimum guaranteed limited with a cap-on-shortfall.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Of the hotels, the NH Nuremberg (pictured) will undergo a renovation that will reposition it as an NH Collection hotel, NH Hotel Group´s upper upscale brand.

Suggested Articles

Expenses are outpacing revenue growth, decreasing profits for hoteliers across Europe.

Target markets in the state of Gujarat include Surat, Baroda and Gujarat International Finance Tec-City.

The one-day event will focus on related hospitality concepts such as hostels, co-living, co-working, student accommodation and serviced apartments.