French real estate developer Foncière des Régions has acquired the purchase options for five NH-branded hotels across Germany for €125 million (US$138.3 million). NH Hotel Group will continue operating in these hotels under new lease agreements.
Hotels in Düsseldorf, Frankfurt, Nuremberg, Oberhausen and Stuttgart comprise 900 rooms built or renovated after 2004. The NH Nuremberg will be renovated and repositioned as an NH Collection hotel.
These assets will be leased by NH Hotel Group for 20 years under a variable lease with a minimum guaranteed limited with a cap-on-shortfall.
With this transaction, Foncière des Régions grows its portfolio in Europe to 80 hotels and said it consolidates its exposure in the particularly strong and dynamic German market, which posted RevPAR growth of 7.6% in 2015.