On Dec 6, First Sponsor Group entered into a joint venture partnership with its key shareholders, City Developments Limited (CDL) and Tai Tak Estates Sdn Bhd, to acquire Le Meridien Frankfurt at €85 million ($135.9 million) including transaction costs. The purchase price works out to be €283,000 per key.

Located in the city centre of Frankfurt, the 300-room freehold property sits on land measuring about 4,405 sq m. It is currently leased to MHP Parkhotel GmbH until May 31, 2040, with the option to renew for another five years.

The property comprises two buildings – one built in 1905 and the other in the 1970s. Facilities include 670 sq m of conference space, a fitness area, and 48 parking lots.

First Sponsor says that CDL and Tai Tak’s participation in the purchase is an endorsement of their expansion plan. “This is another exciting chapter of our European growth story after our entry into the Netherlands two years ago,” says Calvin Ho, chairman of First Sponsor.

The acquisition is slated for completion by either end-Dec or January 2018.