EXTENDAM, 123 IM, and Their Co-Investors Sell Three Hotels in Germany to Operator Partner SomnOO

EXTENDAM, 123 IM, and their co-investors have announced the sale of three Mercure hotels to their operating partner and co-investor somnOO. Located in North Rhine-Westphalia—in the cities of Hagen, Hamm, and Lüdenscheid—this 458-room portfolio performed very well throughout the investment cycle, delivering an IRR in line with expectations.

Acquired in 2018, the three 4-star hotels offer extensive meeting spaces as well as several dining and beverage outlets. The strong returns, made possible by somnOO’s high-quality management, point to a bright future for these properties, which cater to both business and leisure travelers.

The Mercure Hotel in Hagen is located opposite the city’s conference center, 5 km from the train station and 4 km from the university. Centrally positioned, it provides easy access to the city’s pedestrian zone. This 4-star hotel features 146 rooms, 11 meeting rooms totaling 280 m² (hosting up to 300 people), a restaurant, a bar, a sauna, and a new fitness center.

The Mercure Hotel in Hamm is located in the city center, next to the train station and the pedestrian shopping area. This 4-star property offers 142 air-conditioned rooms, ten meeting rooms totaling 390 m², and a large winter garden suitable for events of up to 450 guests. It also features a spa.

The Mercure Hotel in Lüdenscheid is 1.5 km from the train station, at the edge of the city park. This 4-star hotel includes 170 rooms, a restaurant, 12 large conference rooms totaling 260 m², a heated indoor pool, a sauna, and a fitness center.

This transaction reinforces the idea that investing in hotel real estate and business assets offers strong value-creation potential: the asset class’s resilience, especially in times of crisis, continues to appeal to future buyers at exit.

“We are pleased to sell this solid portfolio to our partner somnOO, co-investor and operator of the three properties. Despite the challenges of the COVID period, the teams managed the portfolio effectively and ensured strong performance throughout the holding period, allowing us to achieve an IRR in line with our original thesis. somnOO is a valued partner with whom we are exploring new opportunities as part of our value-add investment strategy in the European hospitality sector,” said Anna Cohen and Matthieu Dracs of EXTENDAM.

“We thank the teams at our hotels and our investment partners for their trust and commitment over the past six years. Dedication, confidence, and teamwork—both at the board level and in the hotels—made this a successful investment for all parties. This transaction proves that somnOO’s strategy is effective for both the company and our investor partners,” added Lars Backhaus and Christian Rousseau of somnOO.