The sale price was not disclosed by the parties involved and not otherwise immediately available. Dr. Reinhard Kutscher, the DIFA Management Board member responsible for business outside Germany, says the acquisition adds another "top class" hotel to the DIFA-GRUND open-ended real estate fund, bringing the total number of hotels owned by DIFA to 18.

"SHC helps us expand our own expertise in the hotel segment and opens up exciting opportunities for acquiring other city centre business hotels in the attractive four to five-star category," says Kutscher. "In addition, joining forces with a third party allows real estate funds to enter into management agreements with hotel operators. Previously not an option, this arrangement helps safeguard returns"

Jones Lang LaSalle acted as Strategic's exclusive advisor in the transaction. "We originally sold the property to Strategic Hotel Capital back in 1998 (and) then advised Barclays Bank on SHC's refinancing of the property in 2001," says JLL Hotel's Global CEO Arthur Haast. "The key to the transaction was the structure. This had to meet DIFA's requirement for investment quality income, with the prospect of some upside potential through a profit sharing mechanism, while at the same time providing for sufficient operating flexibility for SHC."