CBRE Hotels advises on sale of Hilton Frankfurt

Frankfurt, 14 August 2014 – CBRE Hotels, acting on behalf of the owner of the Hilton Frankfurt City Centre hotel, has advised on the sale to new investors specialising in the luxury hospitality sector. The lease with Hilton remains in place.
 
The deal represents one of the largest independent hotel transactions in Frankfurt in the last 10 years and demonstrates that the German hotel market is now receiving significant external investment with stable yields and a robust German economy offering attractive investment opportunities for investors keen to achieve strong and sustainable long term returns.
 
Debt financing for the acquisition was provided by HSH Nordbank in excess of €50 million.
 
Philipp Kraneis, Senior Director, Head of Transactions Germany & CEE CBRE Hotels, commented:
“Working closely with the existing owner, we completed this transaction in a mere two and a half months.  CBRE is a global business, and we are ahead of the market in our understanding of future investors.  This ensured we had immediate access to up to date, local market knowledge and could quickly identify interested, relevant parties.”
 
“The Hilton Frankfurt is a state of the art building positioned at the heart of the city centre’s financial district.  Its location, the fact that it has a lease with a high profile branded operator and the current strength of the hotel market all made this transaction an incredibly popular investment opportunity.” 
 
Dominic Murray, Head of Cross-Border Transactions EMEA, CBRE Hotels, added:
“This transaction is a prime example of the confidence international investors have in the hotel sector, particularly in major cities like Frankfurt.  Transaction volumes for 2014 are already seeing gains on 2013 across Europe and the market is showing no signs of slowing down.  Improving financial performance and tightening yields against a background of lowering capital and debt costs make 2014 an opportune time for hotel operators to trade in the market.  CBRE Hotels EMEA is at the forefront of this activity and our capacity to work with capital across borders leaves us well equipped to meet the needs and expectations of our investors and vendors. We are very pleased to be associated with such a landmark deal in Germany.”
 
Peter Axmann, Head of the Real Estate Clients division at HSH Nordbank, said:
"The deal has enabled us to broaden our client base further and to provide a conservative risk structure for the Bank. This proves our competitiveness and expertise in the real estate business with international investors."
The owner was legally represented by Reed Smith LLP and Marccus Partners Rechtsanwälte, HSH Nordbank by Taylor Wessing and the Buyer by Edwards Wildman, Brown Rudnick and Jung & Schleicher Rechtsanwälte.
The 342 room hotel boasts 14 suites, approximately 1,435 sq m of dedicated conference space, underground parking and state of the art leisure facilities including a 25m swimming pool and a Fitness First fitness club. The hotel also offers an extensive food and beverage offering with a restaurant and two bars.

 
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.

About HSH Nordbank
As a "Bank for entrepreneurs", HSH Nordbank focuses on the target group of owner-managed companies in the upper medium-sized German corporate segment and their owners. For these clients the Bank wants to be the preferred partner in all financial matters - both business-related as well as private. HSH Nordbank focuses on business with corporate clients, real estate clients and clients in upmarket wealth management as well as savings banks.
Established on 2 June 2003, HSH Nordbank AG is the result of the merger between Hamburgische Landesbank and Landesbank Schleswig-Holstein. The two head offices of the Bank are located in Kiel and Hamburg. Total assets amounted to EUR 109 billion on 31 March 2014. Worldwide the Bank employs a staff of about 2,762.