THE manager of Frasers Hospitality Real Estate Investment Trust on Friday said the trust will acquire Germany's Maritim Hotel Dresden for 58.4 million euros (S$90.6 million). This is Frasers Hospitality Trust's first hospitality asset in Germany as well as its first acquisition from a third party.
Maritim Hotel Dresden is a freehold, 328-room hotel located in the city centre of Dresden, the capital of the eastern German state of Saxony. It is a heritage-listed building converted from a preserved grain warehouse in 2006. The hotel adjoins the Dresden International Congress Centre, the trust said.
"This acquisition is in line with our strategy to invest in quality assets that are well located in key cities with sound economic fundamentals," said Eu Chin Fen, chief executive officer of the Reit manager, in a press statement.
"Dresden is a key German city largely driven by high technology sectors and the city centre has limited hotel developments, thus making this a rare opportunity to buy a prime property in an attractive market. The acquisition provides income diversification and with the Maritim master lease arrangement, it also adds stability to our earnings base."