PATRIZIA acquires modern hotel property in Würzburg
PATRIZIA Immobilien AG has acquired a modern hotel property in Würzburg. With 204 rooms, the hotel chain Ghotel operates the second largest hotel in the university city in an 18-storey building built in 2012 with a total letting space of more than 11,000 square metres, considered one of the highest-valued buildings in Würzburg.
"With an experienced operator and a long-term lease agreement, the hotel property in this university city with its strong local economy and rising numbers of tourists constitutes an ideal investment for our customers," comments Douglas Waibel, hotel expert at PATRIZIA. The acquisition is being performed for the real estate fund "PATRIZIA Hotel-Invest Deutschland I". The seller is the company Würzburg Estates. It has been agreed to keep the purchase price confidential.
The Ghotel is located at the northern edge of the historical Würzburg Old Towne in Schweinfurter Straße, one of the main streets approaching the downtown area. The main train station and inner city are within walking distance. With its convex curved glass facade, the 18-storey building offers a breath-taking, panoramic view of the historical Old Towne and the vineyards in the River Main valley. The property also includes a two-storey underground parking garage with more than 180 parking places. The building has been leased to the Ghotel hotel group for 23 years with an option to extend for another five years. Congress space has being created in the direct vicinity through the new building project "Novum". On top of this, a multifunctional hall is planned, which in addition to sports events is also to be used for concerts and conferences.
The hotel market in Würzburg is considered to be tight, as demand has been significantly outstripping supply for years. The number of overnight stays has risen steadily since 2009, while the supply of beds has been stagnated. Many family-run hotels have had to close as a result of their owners reaching retirement age. The city of Würzburg estimates that there will be a need for around 1,000 additional hotel beds in the next few years. Besides tourists and business travellers, Würzburg is a popular venue for conferences and congresses, with capacities has expanded so as to be able to stage more events in the future.
In the hotel area, PATRIZIA now supports real estate assets of around EUR 600 million. "PATRIZIA has been expanding its commitment to this class of assets on a continuous basis for several years," reports Waibel. Investment in operator real estate like hotels offers attractive opportunities for yields, but also require special know-how. In its capacity as one of Europe's leading real estate investment companies, PATRIZIA possesses this know-how, offering institutional investors a unique possibility to invest in extraordinary real estate that calls for special skills and competencies.