The Israel Canada Hotels (ICH) group is making its strategic market entry into Germany with its hotel brand “Brown Hotels”. The company has completed the purchase of five hotels. This acquisition represents a significant step for ICH/Brown Hotels, as it establishes the company's first presence in the German hotel market.
The transaction, in which the commercial law firm FPS provided comprehensive advice, concerns a portfolio of 1,179 rooms. The purchase price for the properties amounts to approximately EUR 15.8 million. The legal advice encompassed the multifaceted aspects of the acquisition and integration into the buyers' corporate structure.
Portfolio and acquisition conditions
The acquired portfolio includes hotels at various locations in Germany. These are an H2 Hotel and an H4 Hotel in Munich Messe, an H4 Hotel in Hamburg Bergedorf, the Centro Park Hotel Berlin, and another H4 Hotel in Leipzig. These properties were acquired from the portfolio of HRG Hospitality B.V. & Co. KG (Revo Hospitality), a pan-European hotel operator with a focus on the DACH region.
The acquisition took place as part of self-administered insolvency proceedings. A key component of the agreement is the investor's takeover of the respective operating companies, including existing lease agreements concluded before the transaction's completion. Existing liabilities of the seller will be settled in the insolvency proceedings and will not transfer to the acquirers.
- —H2 Hotel Munich Messe
- —H4 Hotel Munich Messe
- —H4 Hotel Hamburg Bergedorf
- —Centro Park Hotel Berlin
- —H4 Hotel Leipzig
Dr. Menso Engelmann, Partner at FPS, commented that advising ICH/Brown Hotels on this market entry highlighted the attractiveness of the German hotel market for international investors. He added that the transaction provides the client with a solid basis for further growth. This step signals international players' confidence in the stability of the German hospitality sector.
