PGIM Real Estate acquires hotel in Berlin

Global real estate investment manager PGIM Real Estate has purchased the Steigenberger Hotel am Kanzleramt in Berlin. 

Steigenberger Hotel am Kanzleramt 

This acquisition, made for its European core-plus investment strategy, highlights PGIM's belief in the strong, long-term potential of the hospitality industry, especially in popular tourist and business destinations like Berlin.
The hotel, built in 2014, is conveniently located in central Berlin, near the main train station and the Federal Chancellery, making it a prime choice for international business and leisure travellers. It features 339 rooms, a bar, a restaurant, 12 conference rooms, and a wellness area with a spa, saunas, and a gym. PGIM's strategy focuses on acquiring stable income-generating assets with opportunities for increased value.
Luxembourg-based real estate investment manager IREMIS supported PGIM during the acquisition.
This acquisition expands IREMIS's hotel and leisure portfolio in key European cities. Following the transaction and financing arrangements, IREMIS will collaborate with the operator, Steigenberger Hotels & Resorts (part of Deutsche Hospitality), to enhance the hotel's market position and drive long-term value.
Tobias Waldschmidt, senior portfolio manager of the European Core Plus Strategy for PGIM’s real estate business, commented: “Current market conditions are creating select opportunities to invest in high-quality hospitality assets in cities with long-term growth potential, like Berlin. This acquisition marks a unique opportunity for our investors to secure a prime hotel in one of Europe’s most attractive hospitality markets.”
Peter Lenhardt, head of IREMIS' hotel and leisure division, added: “We are proud to have been involved in the acquisition of such a prestigious hotel in the heart of Berlin on behalf of a leading US American Asset Manager. This investment reflects our shared conviction in the resilience of the hospitality sector and in Berlin’s significant potential and continued appeal as a leading European travel and business destination.”