Deka Immobilien Sells 219-Room Novotel Freiburg am Konzerthaus to IREMIS in Portfolio Optimization Move
Deka Immobilien Investment GmbH has sold the Novotel Freiburg am Konzerthaus, a 219-room hotel at Konrad-Adenauer-Platz 2 in Freiburg im Breisgau, Germany, to IREMIS, an investment manager specializing in hotel properties. The asset was held within the WestInvest InterSelect open-ended real estate fund for nearly 18 years. BNP Paribas Real Estate Hotel Services and Witte Projektmanagement GmbH acted as advisers to the seller.
Deal Structure and Strategic Rationale
The transaction was priced at the level of the property's most recently determined independent appraised value. The sale comes ahead of the current tenant's planned departure on Dec. 31, 2026, a timeline that Deka Immobilien said allowed it to avoid committing substantial capital to renovation and refurbishment of the 1994-built property.
Deka Immobilien GmbH framed the disposition as a risk-management decision rather than a distressed exit. The company said the transaction reduces the financial risks associated with refurbishment, limits potential vacancy exposure, and supports the long-term stability of the WestInvest InterSelect portfolio. The sale is consistent with the fund's stated strategy of reallocating toward modern core assets that meet higher ESG standards.
The move fits a broader pattern of active capital recycling within WestInvest InterSelect's hospitality holdings. In January 2026, Deka Immobilien sold the Jumeirah Port Sóller Hotel & Spa in Mallorca from the same fund, also citing portfolio strategy. The following month, the fund acquired the Andaz Vienna Am Belvedere for approximately €92 million, demonstrating continued appetite for hospitality assets that align with its updated investment criteria.
Property Overview
The Novotel Freiburg am Konzerthaus was built in 1994 and offers 219 guest rooms across 11,103 square meters of lettable space. The property sits on Konrad-Adenauer-Platz, directly adjacent to the Freiburg Concert Hall and within close proximity to the city's main railway station and historic city center. WestInvest InterSelect had held the asset for nearly 18 years at the time of sale.
Freiburg's hotel market has shown relative resilience. The city recorded 2.13 million overnight stays in lodging establishments in 2025, with hotel occupancy reaching 55.2% — above the Baden-Württemberg state average of 41.3%. That local demand backdrop provides context for IREMIS's acquisition of an asset that, while facing near-term operator transition, sits in a market with above-average occupancy fundamentals.
German Hotel Investment Market Context
The transaction comes as Germany's hotel investment market shows improving transaction momentum, though pricing remains measured. German hotel investment volume reached approximately €790 million in the first half of 2026. Rolling 12-month hotel transaction volume across Germany stood at roughly €1.7 billion at the end of the first quarter of 2026, up 24% year over year, with renewed interest from core investors. Prime hotel yields in Germany were at 5.50% as of the second quarter of 2026.
At the operational level, Germany's hotel sector has faced mixed conditions. After 25 million overnight stays nationally in 2024, demand softened in 2025, with year-to-date stays down 2.9%, average daily rate declining 6.1%, and RevPAR falling 5.3%. Occupancy, however, edged up 0.7 percentage points over the same period. That combination — stable occupancy alongside weaker rate growth — has reinforced selective trading activity among institutional owners, particularly for older assets that require meaningful capital expenditure to remain competitive.
Advisers
BNP Paribas Real Estate Hotel Services and Witte Projektmanagement GmbH represented the seller on the transaction. No advisers to IREMIS were identified in the source material.
Sources
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