Patrizia Immobilien has purchased a hotel development project in the German city of Freiburg, from Hamburg-based Revitalis Real Estate and Cologne-based family office Dereco.
Patrizia Immobilien has purchased a hotel development project in the German city of Freiburg, from Hamburg-based Revitalis Real Estate and Cologne-based family office Dereco.
Financial details were not disclosed.
The project, which was bought on behalf of a hotel real estate fund managed by Patrizia, consists of two hotels which will provide a total of 380 rooms on completion in March 2017. They will operate under the Hampton by Hilton and Wyndham Super 8 brands with 25-year lease agreement.
The hotels are being constructed on the northern edge of the city centre, in a new urban quarter known as Gare Du Nord with businesses and apartments for around 2,000 people.
'Freiburg has the highest bed occupancy rate in Baden-Württemberg and, based on room occupancy for hotel chains, Freiburg actually ranks third nationally behind Munich and Hamburg. Two modern hotel concepts in this strong, regional hotel market combined with very long leases promise high profitability and value retention for our investors,' said Douglas Waibel of Patrizia.
Patrizia, a pan-European asset manager made of a listed company and a funds business, manages €600 mln of hotel assets, out of a total portfolio valued at €16.6 bn at end-2015.
