NH Hotel acquisition completed 24 hours ago – Hospitality & Catering News

Eastern Property Holdings, a Swiss based investor in and operator of hotels announced yesterday the acquisition of a 90% of interest in the Nhow Hotel, part of the NH Hotel Group in Berlin, Germany. The acquisition from the Jesta Group did not disclose the acquisition price.

The Nhow Hotel in Berlin comprises 304 rooms, 86 underground & 39 surface parking spaces, a spa, a restaurant and two music studios. Located in Berlin’s Friedrichshain, the hotel is notable for its architectural design by Berlin architect Sergei Tchoban.

The property is leased in its entirety to Nhow Hotel, part of the NH Hotel Group, the third largest business hotel group in Europe. The lease has over 15 years left with the option to extend by a further 10 years.

This acquisition is the latest in EPH’s on-going strategy to diversify its portfolio across major Western European markets, adding attractive real estate investments in stable markets with strong long-term economic outlook. EPH believes that the long term outlook of Berlin is attractive both from a business and tourism market. Such an addition to the EPH portfolio creates long term value for the Company’s shareholders.

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The disposition is in line with Jesta’s strategy of purchasing properties in need of restructuring and translating that into added value to its shareholders. Jesta looks forward to its continued presence in all major cities in Western Europe, the United States and Canada and is currently aggressively pursuing new opportunities.

Berlin is Germany’s capital and its largest employment hub. It is the most attractive tourist destination in Germany, with 12.9m arrivals and 31.3m overnight stays recorded in 2019. The meetings and congress market generated around 8.1m overnight stays in Berlin in 2018 and is expected to grow further due to new exhibition halls with a capacity of 200k sqm.

EPH has confidence in the Berlin hotel market, especially in the up and coming Mediaspree area, as well as the long-term performance of the NH Hotel Group. The building is in an ideal location. Both Jesta and EPH are pleased to have succeeded in completing the transaction under terms that were mutually and equally beneficial.

When the acquisition price is disclosed, it will be interesting to learn what impact COVID-19 had on it.

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