Citygrove Securities Completes €82.5M Refinancing of Three German Hotels

Citygrove Securities has completed an €82.5 million refinancing of three hotels in Germany, the London-based real estate firm announced September 9, 2026. The transaction covers a portfolio that includes Premier Inn properties in Lübeck and Hanover, reinforcing the firm's hospitality platform in the German market.

Portfolio Overview

Two of the three hotels in the refinancing have been publicly identified. The first is a 203-room Premier Inn in Lübeck, situated adjacent to the city's central railway station on a site that was formerly a surface-level car park. The hotel opened in 2024 and operates under a 25-year lease to Premier Inn. The second is a 220-room Premier Inn in Hanover, located at the corner of Hamburger Allee and Friesenstraße on a 1,188-square-metre plot near the main station and the Lister Meile district. The Hanover hotel was in its final construction phase as of late 2024, with completion targeted for early 2026. The identity, location, and size of the third hotel in the portfolio have not been made public.

Transaction Context

The refinancing replaces earlier financing on completed or near-completed assets rather than funding a new acquisition. Citygrove previously secured €65 million of refinance funding for its Lübeck and Düsseldorf hotels through DKB Bank, indicating an established lending relationship in the German hospitality sector. The current €82.5 million transaction was covered by Green Street News, which reported the loan amount at approximately €83 million — a figure consistent with Citygrove's stated figure given standard rounding.

Refinancing stabilized assets at this stage typically signals that a sponsor has moved the properties past development risk and can access longer-duration debt on more favorable terms. Both the Lübeck and Hanover hotels occupy transit-oriented, city-center locations where hotel demand is linked to rail access, business travel, and urban visitation — characteristics that lenders in the German market have increasingly favored when evaluating hospitality collateral.

Citygrove's German Hospitality Strategy

Citygrove Securities, headquartered at 10 Albemarle Street in London, has been building a hospitality portfolio in Germany over several years. The firm has described its strategy as focused on hotels and student housing, and the completion of this refinancing is consistent with efforts to strengthen its balance sheet and pursue additional pipeline opportunities in both sectors.

The use of long-term leases to a major branded operator such as Premier Inn is a structuring approach that can reduce operating volatility and improve financing terms compared with independently operated hotels, given the income certainty a creditworthy tenant provides over the lease term.

Market Implications

The transaction adds to evidence of active financing conditions for German hotel assets where sponsors can demonstrate lease stability, brand affiliation, and urban or transit-oriented locations. Lenders have shown appetite for operational hospitality assets that have cleared the development phase, particularly where long-term operator commitments underpin cash flow. Citygrove's completion of this refinancing, following its earlier DKB Bank facility, points to continued institutional interest in the firm's German hotel platform as it pursues growth in both hospitality and student housing.

Sources

Citygrove Securities — Citygrove Completes €82.5M German Hotel Refinancing (September 9, 2026)