FPS advises Israel Canada Hotels Holdings / Brown Hotels on entry into the German hotel market

With this transaction, ICH/Brown Hotels is entering the German hotel market for the first time. The portfolio comprises the H2 Hotel München Messe, the H4 Hotel München Messe, the H4 Hotel Hamburg Bergedorf, the Centro Park Hotel Berlin and the H4 Hotel Leipzig with a total of 1,179 rooms. The purchase price is approximately 15.8 million euros.

The hotel operations are being acquired through debtor-in-possession insolvency proceedings from the portfolio of HRG Hospitality B.V. & Co. KG (Revo Hospitality), one of the leading pan-European hotel operators with a focus on the DACH region. As part of the insolvency plan-based acquisition, the investor will take over the respective operating companies including the existing lease agreements, from the period prior to closing will be settled within the insolvency proceedings and will not be transferred to the buyer.

“We are very pleased to have accompanied ICH/Brown Hotels on this important step into Germany. The transaction underscores the attractiveness of the German hotel market for international investors and provides our client with a solid foundation for further growth,” says Dr. Menso Engelmann, Partner at FPS. 

About Brown Hotels
Brown Hotels is the hotel brand headquartered in in Israel. The company operates more than 40 hotels in Israel and Greece and is planning expansion into further European markets.