Brookfield Property Partners LP and Starwood Capital Group plan to sell German hotels valued at as much as 700 million euros ($785 million), according to two people with knowledge of the matter.
The owners have hired JLL and Eastdil Secured LLC to advise on the sale of the 10 hotels, once part of the East German government’s Interhotel chain, said the people, who asked not to be identified because the information is private. The hotels include the 37-story mirror-glass Park Inn on Berlin’s Alexanderplatz, which will probably be sold separately, one of the people said.
Representatives at Brookfield and JLL declined to comment, while those for Eastdil and Starwood didn’t respond to a request for comment.
European hotel deals rose 79 percent to 23 billion euros in 2015 -- the most ever -- as investors sought to take advantage of rising tourism and steady income provided by overnight stays, according to data compiled by CBRE Group Inc. Acquisitions in the U.K., Germany and France led the surge, with North American private equity firms leading the list of buyers.
In 2013, Blackstone Group LP agreed to sell the properties to creditors --- Brookfield, Starwood and iStar Inc. -- in a debt-for-equity swap valued at about 600 million euros, a person with knowledge of the matter said at the time. The properties, which include hotels in Dresden and Leipzig, are run under brands including Westin and Radisson.
iStar is no longer invested in the Interhotel properties, an iStar spokesman said by e-mail.