Commerz Real sells two hotels in London

Accor HotelInvest buys two hotels in London
Photo : Courtesy of Commerz Real

Accor HotelInvest UK Limited has acquired two hotels, a four-star Novotel with 182 rooms and a two-star Ibis with 297 rooms, in London from Commerz Real. The purchase price was not disclosed.

Both hotels, at 46-47 Blackfriars Road in London, have been operated by Accor since they opened. Commerz Real acquired the development in 2010 for Hausinvest, its open-ended real estate fund.

“These positive developments helped us secure an extremely attractive profit for our investors,” states Dirk Schuldes, Global Head of Hospitality at Commerz Real.

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Blackfriars Road is located in Southwark, south of the Thames. This borough has seen significant improvements in recent years, including the construction of The Shard, the tallest building in the UK, and the addition of a large number of tourist and cultural attractions.

Norton Rose Fulbright provided Commerz Real with legal advice for this transaction.

Following a record-breaking 2018, a robust start to the year has maintained in the European hotel sector, according to the latest research from global real estate advisor CBRE.

The UK captured 35.5 per cent of capital deployed in the region, reaching €8.2 billion and reflecting a +15.1 per cent year-on-year increase. This growth was spurred by a particularly strong start to 2019, with Q1 up +24.5 per cent.