Brookfield, Starwood said to plan US$785-million German Interhotel sale

Brookfield Property Partners LP and Starwood Capital Group plan to sell German hotels valued at as much as 700 million euros (US$785 million), based on a couple with knowledge of the matter.

The owners have hired JLL and Eastdil Secured LLC to advise on the sale from the 10 hotels, once part of the East German government’s Interhotel chain, said the folks, who asked to not be identified because the details are private. The hotels range from the 37-story mirror-glass Park Inn on Berlin’s Alexanderplatz, that will probably be sold separately, among the people said.

Representatives at Brookfield and JLL declined to comment, while those for Eastdil and Starwood didn’t react to a request for comment.

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European hotel deals rose 79 per cent to 23 billion euros in 2015 – probably the most ever – as investors sought to take advantage of rising tourism and steady income provided by overnight stays, based on data published by CBRE Group Inc. Acquisitions within the U.K., Germany and France led the surge, with United states private equity firms leading the list of buyers.

In 2013, Blackstone Group LP decided to sell the properties to creditors – Brookfield, Starwood and iStar Inc. – in a debt-for-equity swap worth about 600 million euros, a person with knowledge of the matter said at that time. The properties, including hotels in Dresden and Leipzig, are run under brands including Westin and Radisson.

iStar is not committed to the Interhotel properties, an iStar spokesman said by e-mail.

Bloomberg News