InterContinental Hotels loses three major properties in Germany including Berlin
Following disputes with owners and New Dorint Company, InterContinental Hotel Group will not renew the management agreements for Berlin, Dusseldorf and Cologne from April 1st 2011. It is unclear what hotel management company will take over the Berlin property. Ironically, the InterContinental Berlin is hosting this week the International Hotel Investment Conference.
The Berlin InterContinental hotel is a Union Investment property (the lease runs until the end of 2015), the Cologne and Dusseldorf hotels belong to E & P Holding, the real estate funds of Dorint-owner.
Given the major business and cultural events Berlin has been hosting in the past years, its hospitality market hasn’t been keeping up with demand especially on the five star sector. The current major players on the five star sector are: Ritz Carlton, Grand Hyatt, Rocco Forte and Soho House.