CBRE aquires 5-Star Sofitel Munich Bayerpost on behalf of Deka ImmobiIien
The Largest Single Hotel Transaction In Germany
Deka Immobilien Invest GmbH has acquired the 5-star Sofitel Munich Bayerpost from E & P Real Estate GmbH & Co. KG for an undisclosed amount. This acquisition represents the largest transaction of a single hotel in Germany to date.
In the off-market transaction CBRE acted as an advisor for DEKA.
The Sofitel Munich Bayerpost is a successful 5-star hotel in a prime central location next to Munich Central Station. The 30,646 square meter building has 396 rooms, 57 suites, a bar, meeting rooms and a spa. In 2001, E & P Real Estate acquired the property and transformed into the first-class hotel we see today.
The institutional appetite to invest in core real estate has heightened considerably thanks to low interest rates and the associated impact on bond yields. The German economy has remained resilient throughout the global financial crisis with RevPAR growing at an admirable compound annual growth rate of 5.14% between 2010 and YE 2014 – the highest growth rate of any key European city.
“Hotel gross operating profit at a market level also sits 17% ahead of the pre-recession peak. The stability of the market through turbulent times inevitably appeals to core investors; however, the statistics also show that there remains substantial opportunity for performance growth.