DLA Piper advises IHG Hotels & Resorts on continuation of Tidal Group hotels and transfer to new operator Westmont
DLA Piper has advised the global InterContinental Hotels Group (IHG) Hotels & Resorts on the continuation of 10 hotels of franchisee Tidal Operations Germany GmbH (TOG) and the subsequent transfer to a new operator, Westmont Hospitality Group (Westmont).
TOG operated the hotels under the IHG Hotels & Resorts brands Holiday Inn, Holiday Inn Express and Crowne Plaza and had to file for insolvency in 2020. In addition to other restructuring measures, IHG Hotels & Resorts took over the interim management of the affected hotels, which are part of a portfolio acquired in 2017 by real estate investment manager Invesco Real Estate on behalf of three clients.
Together with Invesco Real Estate and insolvency administrator Michael Bremen of PLUTA Insolvenzverwaltung, IHG Hotels & Resorts have now found a new operator, ensuring the preservation of the 10 hotel operations and 296 employees. The official transfer of the hotel operations to Westmont was completed on 1 March 2021. The hotels are to reopen as soon as this is possible again.
As one of the largest private hotel property owners in the world, Westmont operates approximately 400 hotels in Europe, North America, Africa and Asia. Westmont will act as the tenant and operator of the portfolio of 10 hotels in Germany as well as co-invest with Invesco in the property owning companies.
The DLA Piper core team was led by partner Mike Danielewsky and counsel Florian Bruder (both Restructuring, Frankfurt) and also included partners Christian Lonquich (Frankfurt), Dr Martin Haller (both Real Estate, Munich), senior associates Dr Martin Kaltwasser (Restructuring, Frankfurt) and Markus Kotowski (Real Estate, Munich), and associate Maximilian Dieler (Restructuring, Frankfurt). In addition, partner Matthew Duncombe and legal director Milena Falciano-Padron (both IPT) from DLA Piper's Leeds office were involved.