DLA Piper has advised NH Hoteles in the sale of Grand Hotel Krasnapolsky in Amsterdam to AXA Real Estate, acting on behalf of a European and Asian investor. The transaction was closed on 27 June 2013.

The transaction is worth a total of EUR 157 million and covers approximately 468 rooms and suites, 2300 square metre conference centre, various dining rooms, meeting rooms, apartments, parking spaces, and the Winter Garden, together amounting to 40,000 square metres of space. The deal concerns a share transaction consisting of both the operational business and the property.

The transaction will give the five-star hotel in Dam Square a significant quality injection. The parties have agreed that the hotel will undergo a EUR 38 million refurbishment between 2014 and 2017. The parties have also concluded a 25 year management agreement in which NH Hoteles will continue to manage the hotel. This will allow the new owners to benefit from NH Hoteles' operational expertise and its specific knowledge of Grand Hotel Krasnapolsky. For AXA Real Estate, the deal will boost its European hotel portfolio of 101 hotels, now worth EUR 2 billion.

The DLA Piper team that advised NH Hoteles consisted of Daphne Bens, Hans-Mark Giezen, Pieter Paul Terpstra, Sander Wiggers, Noor Gerver, Petra de Rooij, and Wouter Metz.

AXA Real Estate received legal and tax advice from Loyens & Loeff.

Daphne Bens said: “This is an exceptional and interesting transaction for us as legal advisors. The property itself is exceptional, and the parties have not only negotiated the sale but also their future cooperation in managing the hotel, including a major refurbishment programme. So they will be cooperating closely for the foreseeable future.”