Steigenberger Hotels AG
Steigenberger Hotel - Deidesheim
Just recently a group of Chinese investors bought a 4-Star Steigenberger Hotel in Deidesheim between Frankfurt and Stuttgart from a Luxembourg-based investor, although so far the buyer’s identity and the purchase price have not been released.
With Asian investors becoming increasingly active on the German market, one area which can expect to start seeing a lot more interest is the hotel sector. Most hotel groups have already made big strides to accommodate Asian visitors, but the stream can expect to turn into a flood over the coming years – hence the visible efforts by most chains to understand their Asian guests’ needs better.
The first hotel deals are already being done in Germany, with more expected. Just recently a group of Chinese investors bought a 4-Star Steigenberger Hotel in Deidesheim between Frankfurt and Stuttgart from a Luxembourg-based investor, although so far the buyer’s identity and the purchase price have not been released. The 123-room hotel is one of the largest in the region, located in a vineyard and in walking distance of the historic town centre, and easily accessible from regional centre Ludwigshafen, said Christie + Co, which advised the seller. The country house-style hotel includes a restaurant, bar, winter garden, a 180 sq.m. spa and eight conference rooms for up to 150 people.
In March this year the Chinese hotel and tourism company New Century Tourism Group paid at least €9m for a 17-storey vacant hotel high-rise on the border between Frankfurt and Offenbach, with plans to invest a further at least €25m in the property. The property, previous run as a Golden Tulip hotel, has been empty for three years, following the insolvency of then-operator Hospitality Management. The target audience for the new four-star-plus hotel will be Chinese business visitors. The building will have 224 luxury rooms and 16 suites when it opens in end-2015.
The Hong Kong-based New Century Tourism Group is China’s second largest hotel group with 118 hotels, and this is their first venture outside China. The project will pay lip-service to local clientele, but overall it will have a very strong Chinese feel to it. Its three restaurants plan to import chefs from China and establish a reputation as the new best place to eat authentic Chinese in the region. (Ed: although there has been a certain scepticism in Frankfurt circles about the choice of location for the new hotel, given the ambitious plans of a neighbouring Holiday Inn in Offenbach to invest in a further 300-room development in the city, we’re frankly looking forward to the promised gastronomic delights in the new hotel, which happens to be on the right side of town for REFIRE’s editorial offices…)
Meanwhile, the Singapore-based Frasers Hospitality is launching its serviced apartments concept in Germany, having bought a first asset in Frankfurt (for an undisclosed price, and is looking for more properties across the country.
According to Andreas Erben, MD of Colliers International Hotels which advised Frasers on the deal “The Frankfurt asset is the first milestone in the identification of further suitable locations for Frasers. Further target locations are, among others, Munich, Berlin and Hamburg.” The asset is located on the main boulevard in Frankfurt’s European Quarter (Europaviertel) near the train station. It will be operated under the long-stay concept Capri by Frasers.
Frasers manages 81 serviced apartments across the globe. It is part of Frasers Centrepoint, one of Singapore’s largest property companies with total assets of around S$10.5bn (€6.2bn) in 19 countries across Asia, Australasia, Europe, and the Middle-East.
Another Singaporean group, Far East Orchard, which is the listed arm of Singapore’s largest private property investor and developer Far East Organisation is also making its first foray into Europe by buying a 50% stake in a European hotel portfolio in Germany and Denmark as part of its recently-launched joint venture with Australia’s Toga Group. The hotels have a book valuation of €107m.
Far East Orchard’s hospitality subsidiary took 50% of four Adina Apartment hotels, two of which are in Berlin, one is near Frankfurt’s Opera House near Theaterplatz, and the fourth is Copenhagen. “This purchase underlines our expansion plans, which started with a number of hotel property acquisitions in Australia last year,” said Far East Orchard managing director Lucas Chow. “For this purpose, we are utilising the synergies provided by our joint venture partner Toga Group.” Adina Apartment Hotels offers high-end studios and apartments, aimed at the executive staying for more than a couple of nights, and operates seven hotels in Berlin, Frankfurt, Hamburg, Copenhagen and Budapest. It plans to grow its German portfolio to 15-20 assets.
Arthur Kiong, CEO of Far East Hospitality, said the acquisition strengthens the firm’s standing in Europe and provides a basis for future activity. “Europe is highly attractive for international tourists and will remain the most important tourism region in the world.” Far East Hospitality plans to become a leading regional player with its own hotel and apartment brands.
