London-based Blue Coast Capital has acquired the 248-room Courtyard by Marriott Munich City Center hotel near Munich's central train station from Union Investment GmbH.
The hotel sold for €74.9 million ($87.73 million), or €302,016 per key, a price which Union Investment said in a statement “is slightly above the most recent valuation.”
The property was held within Union Investment’s open-ended real estate fund, UniImmo: Europa. According to CoStar, the fund's real estate portfolio is valued at €13.7 billion. Specifically in Munich, Union Investment has seven properties with a value of approximately €500 million.
Blue Coast, which invests across several real estate sectors, formed in May 2019 in a merger between UK & European Investments Limited and LTG Capital, according to records held at Companies House. Other hotels in Blue Coast's portfolio include the 278-room Marriott Hamburg, which it acquired in September 2015 for approximately €55 million, according to CoStar.
According to Union Investment, Munich is attracting the greatest interest from hotel investors in markets across Germany, which prompted the company to sell the Courtyard by Marriott Munich City Center after holding it for almost two decades. Union Investment has been the hotel’s only owner since the property opened in 2006.
The company said in a news release the sale was a strategic one, “in particular due to the age of the property.” Madeleine Gross, Union’s head of investment management for hospitality, said the sale improves the liquidity of the UniImmo: Europa fund.
“The transaction shows that investors continue to focus on hotel properties with upside potential in addition to traditional core products,” she said.
The sale of the Courtyard by Marriott Munich City Center underlines the city’s recent hotel performance.
According to CoStar hospitality data, Munich hotels broke a record for year-over-year performance metrics back in April as the city hosted Bauma, the construction and mining trade fair, from April 7-13. For the month, Munich hotel occupancy rose 7.8% year over year to 71%, average daily rate jumped 59.3% to €190.71 and revenue per available room increased 71.7% to €135.41. During Bauma, Munich's ADR peaked at €453.21 and hotel occupancy rose to 97.2% on April 8.