Principal Real Estate sells 11 European city center hotels for €545m

U.S.-based Principal Real Estate has sold the remaining 11 city center hotels in Europe from its first German special fund to AXA Investment Managers – Real Assets for €545 million ($596 million).

The portfolio comprises more than 2,300 rooms in seven hotels in Germany including the Mondial Hotel am Dom MGallery in Cologne; the NH Hotels in Duesseldorf and Cologne; two Mercure Hotels in Berlin and Hannover; the Intercity hotel in Leipzig; and the Steigenberger hotel in Kiel. Principal Real Estate also sold four hotels in other major European cities such as the Hilton Danube in Vienna, the Ibis Hague City Centre, the Lux Hotel Lisboa Park and the NH Hotel Turin Centre.

This transaction concludes the disposal of the entire portfolio of Principal Europe’s first hotel real estate fund, which first closed in 2012, and acquired 16 hotels through 2016. It started a disposal process in 2018 that included three hotels in Amsterdam, Frankfurt and Nuremberg.

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