K+K Hotels sells prestigious European portfolio to US group
A portfolio of ten hotels spanning Europe’s most sought after cities has been sold by the Austria-based Koller family to a joint venture of the US based hotel owner and operator Highgate Hotels and the investment bank Goldman Sachs. JLL and Credit Suisse, advised on the sale of the K+K Hotels group. The sales price remains confidential. Clearance of the transaction from the Austrian merger control is expected in the upcoming weeks.
The ten four and four-star superior hotels, comprising 1,200 rooms in total, are operated under the K+K brand and are located in the city centres of Europe’s most prestigious hotel and hotel investment markets, including London, Paris, Barcelona, Munich, Vienna, Prague, Budapest and Bucharest. The management platform was also included as part of the sale.
The K+K Hotels were owned and operated by the Austria-based Koller family for over 50 years.
“The transaction offered investors the rare opportunity to not only acquire high-end real estate in prime strategic locations, but also a well-established and highly profitable management platform, allowing for an instant market penetration and a basis for future growth in Europe’s key cities with highest entry barriers,” said Sheima Salloum, Senior Vice President JLL Hotels & Hospitality Group. “We were managing a highly competitive bidding environment with strong interest from a number of cross-border investors, especially from the US and Asia, and a highly diversified buyer audience.
The sale emphasizes Europe’s appeal to international and cross-border investors as well as operators’ increasing willingness to secure top destinations through strategic acquisitions.”
“This transaction perfectly underlines the current trend towards large volume portfolio and management platform deals, accounting for some 60 percent of EMEA’s total transaction volume year-to-date September 2015,” added Christoph Härle, CEO EMEA JLL Hotels & Hospitality Group.
“We expect that international investors will continue to focus on large-scale deals until year end and beyond, with debt being readily available at highly attractive conditions.”