Portfolio of hotels with long-term leases, Germany

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Portfolio of hotels with long-term leases, Germany

22,760,000 €
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  • Yield
    5.8%
Details
Property parameters
  • Total rooms: 232
Financial performance
  • Annual income: 1,318,000 €
Tenants
  • Fully let
  • End of lease: 2035
Transaction costs
  • Notary (state registration): 1.5%
  • Broker: 4.0% + VAT

Portfolio of 5 hotel assets in Germany.

Description

The portfolio consists of 5 centrally located city hotels in Baden-Württemberg, Bavaria, North Rhine-Westphalia and Schleswig-Holstein. The population of the cities ranges from 120 to 600 thousand people.

All hotels have a 15-year lease contract with a well-known and experienced hotel chain.

The total number of rooms — 232 units.

Financial performance

The annual income is 1,318,000 €.

The yield is 5.8%.

Tenants

The hotels are fully let. The tenant is a well-known and experienced hotel chain with 80 properties under management in Germany.

The lease agreements are valid for 15 years.

Transaction costs

Notary (state registration) is 1.5 – 2%.

Brokerage fee is 4% + VAT 19% (total 4.76%).

Location

All properties are centrally located in large cities of the following federal states of Germany: Baden-Württemberg, Bavaria, North Rhine-Westphalia and Schleswig-Holstein. The population of the cities ranges from 120 to 600 thousand people.

Germany leades in investment attractiveness among European countries. The volume of investments in commercial real estate is constantly growing and exceeds € 50 billion annually. The economy of Germany is a highly developed social market economy. It has the largest national economy in Europe and the fourth-largest by nominal GDP in the world.

  • Property on the map
    Location right down to the building, street or city

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

The terms and conditions of our engagement depend on the condition and location of the property and are to be discussed in each particular case.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a hotel purchase with a construction loan

Investment vehicle
Hotel
Construction loan
Yield per annum
5.8%
8—10%
Investment budget
22,760,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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