Internos Real Investors has bought and leased back two MGallery hotels in Germany and the Netherlands from hotel group Accor for €44m.
Internos has paid €20.5m for the 207-room MGallery Mondial Am Dom in Cologne and €23.5m for the MGallery Convent Hotel in Amsterdam, which has 148 rooms. The transaction includes a renovation program of €12.4m, of which Internos will put in €7.3m.
Both hotels will remain operated by Accor through a 15-year commercial lease agreement that will be renewable at Accor’s option.
The hotels are leased back on a turnover rent which will average 21.5% of the annual revenue of the hotels. Based on 2011 revenue, the net variable rent would have reached €3m last year.
Internos will be responsible for insurance costs, property taxes and structural capital expenditure.
Accor says that the deal confirms its ability to actively manage its assets in line with its strategy of reducing adjusted net debt by €2.2bn by 2015.
Accor is present in 92 countries and has more than 4,400 hotels with 530,000 rooms. Its brands include Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio and Ibis.
