Not all hotels in Germany are in the sphere of interests of the French investors. On the picture: luxury hotel on the German Baltic Sea, which is out of the scope of LFPI interests.
French investment capital access German hotel market. LFPI investment fund created a subsidiary in Germany, which over the next five years will be the management company for the future German hotels. Plans of LFPI to purchase at least 30 hotels in Germany were reported by the German edition Immobilien Zeitung.
In total LFPI intends to buy 30 hotels in different cities in Germany. All acquired hotels will have 1-3 stars. Part of the hotels will be managed under franchise agreement and part will be presented as independent hotels.
German hotel market is today one of the most promising in the Old World. It is witnessed by general intensification of global hotel brands in German direction and particular examples. It is known, for example, that as of June 2011 Berlin is the third largest city in the world in hotel construction.
Currently LFPI investment fund owns about 60 hotels. Most of them are budget and economy class hotels in Paris. Thus, the market of budget hotels is quite familiar for LFPI. LFPI mostly owns brand hotels, mainly represented by Louvre Hotels group, Accor and Best Western chains.
LFPI continues the policy of adherence to traditional brands also on the German market. Among the company's recent acquisitions are Ibis Hotel in Aachen and Best Western Kanthotel in Berlin.
According to Immobilien Zeitung, the area of LFPI interests include hotels in the price range from several million euros, as Ibis in Aachen, to representative hotels that can be attributed to the category of business hotels. Price ceiling, which the company will likely hardly cross is 25 million euros for one hotel.
LFPI is a French private investment company, which interested in real estate. Main activities of LFPI are direct investments. Investment capital of LFPI is currently about 2 billion euros.
Photo: Marcus Lenk
Date: 02/08/2011
No comments