Leonardo Hotels is targeting a European expansion funded by a €500m (£364m) sale and leaseback of its entire German portfolio.
The luxury hotel group has appointed Eastdil Secured to sell its 20 German properties, which comprise more than 3,000 bedrooms.
The asking price for the assets reflects a circa 6% yield.
Leonardo is expected to offer new 25-year leases on the four-star hotels but will negotiate final terms with potential buyers.
The group has already initiated its expansion and recently opened its first UK hotel – a 230-bedroom hotel on Bath Road in Middlesex, next to Heathrow Airport, taking on a 25-year lease that it agreed with Standard Life.
A number of heavyweight investors have been approached on the deal, which is expected to attract global interest.
Derek Gammage, managing director of CBRE Hotels EMEA, said: “It’s a good lot size, it’s Germany, which people like, it’s a highly competent hotel operator and at this scale the deal will have a lot of interest.
“Sale and leaseback is a good way of generating cash. As Hilton once said, ‘Are we a hotel company or a property company?’”
Leonardo was launched by Fattal Hotels Group in 2007 and operates more than 85 hotels across Europe in countries including Israel, Austria, Switzerland, Belgium and Hungary.
The sale is the latest in a string of high-profile hotel portfolios to be brought to market in recent weeks totalling around £2bn and including QHotels, Kew Green Hotels, Jupiter Hotels, Malmaison and Hotel du Vin, the Mint portfolio of Double Tree hotels and Starwood’s De Vere and Principal Hayley hotels.
