AXA IM-RA completes acquisition of Abba Hotel in Berlin
AXA Investment Managers – Real Assets , a global leader in real assets investment and the leading real estate portfolio and asset manager in Europe, announces that it has completed the acquisition, on behalf of one of its clients, of the Abba Hotel in Berlin, Germany. The transaction has been structured as a sale and leaseback agreement with Abba Hotels, a Spanish-headquartered owner, operator and developer of hotels, who has committed to continue running the asset on a new long-lease following the deal’s completion.
Purpose-build and opened in 2010, the four-star Abba Hotel in Berlin has been acquired in prime condition and comprises 214 rooms arranged over seven above-ground floors. Catering to Berlin’s business and leisure travellers, the hotel’s facilities include four meeting rooms, a restaurant and bar, a spa and fitness centre, in addition to 22 underground parking spaces.
Situated in the heart of Berlin, the Abba Hotel benefits from a prominent location just off Kurfurstendamm, the city’s main shopping street and is very well connected to a range of public transport options. Owing to its central location in Germany’s most vibrant, youthful and international city, the hotel attracts business and leisure guests alike, with demand expected to remain robust as visitors are drawn in increasingly high numbers, pushing occupancy rates of hotel rooms in Berlin higher.
The Abba Hotel adds to AXA IM – Real Assets’ €2.6 billion portfolio of 87 hotels across eight countries that it manages on behalf of clients. AXA IM – Real Assets’ hotels are predominantly managed by leading hotel operators through all variations of management contracts, from traditional leases to franchise agreements. This is in line with its investment strategy of undertaking a full range of partnership options with best in class operating companies.
Karl Badstuber, Senior Hotel Specialist at AXA IM – Real Assets, commented: “The Abba Hotel is a core asset located in a key German market which demonstrates favourable long-term fundamentals which support the hotel sector, making it a very attractive addition to our managed portfolio. Having been welcoming guests for almost seven years, we have invested into the Abba Hotel with a strong track record and now look forward to working closely with our new operating partner whilst drawing on our own depth of experience in managing such assets to further enhance its returns potential for the benefit of our client.”