Peakside Capital Advisors has acquired Hessischer Hof, a luxury hotel with an adjacent office building in Frankfurt.
The property was purchased for an undisclosed sum from Hessische Hausstiftung, a foundation of the House of Hesse. The property will become part of the Peakside Real Estate Fund IV.
The luxury hotel at Friedrich-Ebert-Anlage 40 was built in 1952, replacing the former city palace of Prince Wolfgang of Hesse-Kassel. Comprising 12.330 m2 of GLA, the asset was comprehensively refurbished by the seller over the past ten years.
Previously operated as a 5-star hotel, the building includes 121 rooms and suites, a 180 m2 presidential suite, eleven event and meeting rooms, a restaurant, a bar, four terraces, a winter garden, a spa and fitness area with a view over Frankfurt’s rooftops and 80 parking spaces.
The adjacent office building in Beethoven Strasse 5 encompasses 560 m2 and is leased to two tenants. It will be fully refurbished and re-let after their contracts expire.
Boris Schran, managing partner at Peakside, said: 'Hotel Hessischer Hof iconic in Frankfurt’s luxury hospitality market – and it will be reinstated as such.
'We are convinced that the established hotel location close to the Trade Fair and Festhalle, a multi-purpose arena, makes the property an exceptional investment for our PREF IV fund. We are planning to refurbish the asset and reposition it with a new operator.'
Simon Lutz, partner at Peakside, added: 'We have been talking to several potential operators and received very positive feedback on our plans for Hessischer Hof. Additionally, we are planning a timely revival of a Frankfurt night life icon, Jimmy‘s Bar.'
Peakside secured the first investment for PREF IV in February with the acquisition of a 5,400 m2 office building in Frankfurt’s Westend-Nord district. The company targets a full investment volume of €1.2 bn for the fund. The focus lies on German properties with value-add potential across all asset classes. Ticket sizes range from €30 mln to €200 mln.
The transaction was brokered by Colliers International. The seller was advised by HauckSchuchardt (legal & tax); the buyer by Baker McKenzie (legal & tax), FPS (public law), KVL (technical due diligence) and Treugast (commercial).
