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.
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.