Sale of the Berlin luxury hotel Adlon failed for the time being

86 percent of the approximately 4,000 owners of the Adlon in Berlin voted for the sale of the luxury hotel. However, shareholders with larger shares in the property can prevent the levy with their vetoes. The opponents of the sale primarily criticize the conditions of the responsible company.

The luxury hotel “Adlon” on Pariser Platz in Berlin cannot be sold for the time being. The real estate company Jagdfeld announced that the necessary majority for the sale of the property was not achieved among the shareholders. Accordingly, although 86 percent of the Adlon fund shareholders voted for the sale, they only hold 71.04 percent. A capital majority of 75 percent was required.

The luxury hotel is part of a fund, Fundus-Fonds 31, which is managed by Jagdfeld. According to the company, the fund - and thus the "Adlon" - belongs to around 4,000 shareholders who are invested in the fund. These are predominantly private investors. Because they were now at an age where they wanted to part with their shares, Jagdfeld announced a few weeks ago that he wanted to sell the property.

Jagdfeld rated the vote result as an “overwhelming mandate to tackle the sale again.” "Now is the right time for the company to sell. This is the only way for the early small investors, often 80 years old, who are helpless on their own due to a lack of alternatives, to get their money's worth," the statement said.

Larger shareholders in particular had previously spoken out against the sale. They particularly criticized the staggered profit sharing for Jagdfeld. According to consistent information, the company will receive, among other things, 20 percent of the additional proceeds if the purchase price is higher than 310 million euros. Jagdfeld had estimated a minimum sales price of 280 million euros. What will happen next and by when a sale should be completed remains to be seen.

The magnificent hotel in East Berlin, which was founded almost 120 years ago by Lorenz Adlon, burned down except for one side wing in 1945 and was completely demolished in 1984. In the 1990s the hotel was rebuilt according to the original plans and reopened on August 23, 1997. Today it is operated by the luxury hotel group Kempinski. The lease runs until the end of 2032. This remains unaffected by the sale. What happens next is unclear.