Commerz Real has acquired a three-star Intercity Hotel with 216 rooms to be newly constructed in Wiesbaden, Germany, for its open-ended real estate fund hausInvest for €33.4 mln.
Project developer GBI is selling the property located on Klingholzstrasse in the immediate vicinity of Wiesbaden central station. The asset will be operated under a 20-year lease agreement with Intercity Hotel, a brand of Steigenberger Hotels, including an obligation on the part of Steigenberger to become the lessee.
Following completion planned for the first six months of 2021 the building will have a total floor space of 10,600 m2, including a restaurant, spread over two buildings with four and six storeys, respectively. In addition it will offer 40 car parking spaces in an underground garage and 14 parking spaces on the street.
'Wiesbaden has a very stable hotel market and growing demand,' explained Dirk Schuldes, global head of Hospitality at Commerz Real. 'Commerz Real expects to see further growth, and in particular in the number of business travellers, as a result of the opening of the Rhein Main Congress Center in 2018, which is within easy walking distance of the hotel.'
The acquisition was structured as a forward funding agreement. This means that Commerz Real has initially bought the plot of land with a development obligation and then pays for the property in instalments in line with construction progress.