CDL Hospitality Trusts acquires German hotel for $153.8m
Germany will account for 6% of its NPI post-acquisition.
CDL Hospitality Trusts (CDLHT) acquired 94.5% stake of the Pullman Hotel Munich in Germany for around $153,8m).
According to UOB Kay Hian, this provides income diversification and stability for the group, with an upside potential from a variable rent structure.
Post-acquisition, Germany would account for around 6% of its NPI and asset value.
Vendor EVENT Hotels would continue to lease and operate the hotel and also hold a 5.1% stake in the asset, post transaction. CDLHT would receive rent at 90% of its net operating profit subject to a guaranteed EUR3.6m fixed rent.
"The lease, for 20 years from completion date, together with the variable rent structure provide stability and room for upside potential in our view," UOB analyst Vijay Nataranjan said.
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