PATRIZIA is expanding its presence in the hospitality real estate segment with the acquisition of the B&B Hotel Berlin-Tiergarten. The transaction was executed as part of the special fund "PATRIZIA Hotel-Invest Deutschland I". Art-Invest Real Estate was the seller. The property is let on a long-term lease to the operator B&B Hotels.
Built in 2016, the property is located in a central inner-city area of Berlin-Charlottenburg, at Englische Straße 1-4. The immediate proximity to the Landwehr Canal and Tiergarten, one of the capital's most important green and recreational areas, characterises the location. This positioning appeals to both leisure and business guests.
The property covers an area of over 6,500 square metres, spread across nine floors including a basement. It accommodates 186 hotel rooms and 19 parking spaces, ten of which are equipped with EV charging stations.
Strategic Objective of the Acquisition
Thomas Otto, Head of Investment Management Operated Properties at PATRIZIA, commented on the acquisition. He stated that this acquisition consistently continues the group's strategy to further expand its positioning in the resilient and high-growth budget segment. Simultaneously, the transaction serves to geographically diversify the fund in one of Europe's leading hotel markets. The partnership with B&B Hotels, a leading operator in the budget segment, strengthens exposure to a proven partner. Otto emphasised that the combination of segment resilience, location attractiveness, and operator professionalism creates a solid basis for stable returns within the investment product.
Successful Divestment Cycle
Dr. Peter Ebertz, Managing Director and Head of Hotels at Art-Invest Real Estate, commented on the divestment. He described it as the conclusion of a successful investment encompassing the property's complete lifecycle, from development and asset management to divestment. The sale is further proof of the successful implementation of the manage-to-core strategy and long-term value creation throughout the entire investment cycle. Dr. Ebertz stressed that the transaction underscores the ability to achieve attractive results for investors even in a challenging market environment.
The seller was exclusively mandated by BNP Paribas Real Estate as broker. Legal advice for the seller was provided by Jones Day, while Gowling WLG advised the buyer on legal matters.
