International: W. P. Carey Says ‘Ja’ to Germany
- Jul 06, 2015
By Adriana Pop, Associate Editor
CPA:18 – Global, a non-traded REIT managed by New York City-based W. P. Carey Inc., has agreed to finance the construction of a yet another hotel in Germany.
This time, the trust will provide approximately $29 million (€25 million) for the development of a new 207-key property in Hamburg, which will be leased to the German affiliate of Melia Hotels International, S. A., for 25 years upon completion.
This transaction comes on the heels of CPA:18 – Global’s recently announced construction, funding and acquisition of an $85 million (€76 million) hotel in Munich, Germany.
The new Hamburg hotel is scheduled to open in the summer of 2017 under the INNSIDE by Melia flag, a leading European brand represented by 14 locations across Germany and Spain. The developer of the project is Pino Sergio, who has approximately 24 years of experience in real estate management and development.
Amenities will include a fitness center, conference space, a bar, restaurant, underground parking, as well as a boat dock on the nearby canal.
The property will rise on the edge of HafenCity, a 388-acre urban regeneration district that includes a variety of residential buildings, offices, as well as leisure, retail and cultural facilities. Once completed over the next decade, this area could host approximately 12,000 residents and 45,000 employees.
Hamburg currently ranks as Germany’s second largest city. As one of Europe’s top destinations for tourists and business travelers alike, Hamburg recorded an average increase in hotel room supply of 3.2 percent since 2010, while demand advanced by 5.8 percent during the same period.
Melia, the upcoming hotel’s operator, ranks as Europe’s third-largest hotel group by room count. The company’s global portfolio includes more than 350 hotels in the midscale to premium segment in 30 nations across four continents. Melia is currently listed on the Madrid Stock Exchange with a market capitalization of approximately $2.5 billion.