Art-Invest Real Estate has acquired the IntercityHotel Frankfurt Hauptbahnhof Süd. The seller of the property is CA Immo. The acquisition was made for one of Art-Invest Real Estate's institutional fund vehicles. The parties have agreed not to disclose the purchase price. The hotel is leased long-term to IntercityHotel GmbH, a subsidiary of Steigenberger Hotels GmbH and part of H World International. With over 13,000 hotels worldwide, H World is one of the largest hotel companies.
Opened in 2018, the upper-midscale hotel has 414 rooms, making it one of the largest accommodation establishments in the city. In addition to a hotel bar, its offering includes modern meeting and conference facilities. A separately operated restaurant serving Huaiyang cuisine complements the gastronomic offering. The property also includes a separately rented underground car park. Flixbus operates a long-distance bus terminal on the neighbouring plot, which further increases the footfall at the location.
Location and Strategic Alignment
The property is located directly at Frankfurt Central Station (Hauptbahnhof). This is one of Europe's most important transport hubs. Its central location offers excellent connections to Frankfurt Airport, Messe Frankfurt, the banking district and the city centre. The combination of good accessibility, high visibility and a diversified demand base makes the location one of the most attractive hotel markets in Germany. Dr. Peter Ebertz, Managing Director and Head of Hotels at Art-Invest Real Estate, stated that the IntercityHotel Frankfurt Hauptbahnhof Süd perfectly fits the investment strategy in European metropolises. He highlighted the central, high-traffic location, the efficient product and the long-term established operator, which would improve the fund's performance.
The acquisition underscores Art-Invest Real Estate's ambition to create sustainable value for investors through investments in hotel locations and to specifically further develop the diversified core hotel portfolio in German and European metropolises. On the CA Immo side, Hedwig Höfler, Group Head of Investment Management, commented on the sale as a further step in the strategic portfolio streamlining. She explained that the investment focus is on modern office properties in central locations in the core markets. Active capital rotation is an essential part of the strategy to free up capital for the company's own development pipeline or for external investments through selective sales.
Advising Parties
- —Art-Invest Real Estate was advised legally by DLA Piper, technically by STANE GmbH, and commercially by Hotour Hotel Consulting.
- —The transaction was brokered by BNP Paribas Real Estate.
- —McDermott Will & Schulte Rechtsanwälte Steuerberater LLP provided legal advice to CA Immo.
The hotel was acquired as part of an asset deal and is intended to remain a long-term holding within the institutional fund vehicle's portfolio.
