P.A. Finanzierungsberatung has successfully completed the refinancing of the Best Western Plus Hotel in Bautzen. The transaction ensures a long-term financing basis for the hotel property, which is centrally located opposite Bautzen's historic Old Town. The property is owned by an experienced family office pursuing a long-term investment strategy.
The property houses the Best Western Plus Hotel with 156 rooms. Additionally, further commercial and office spaces are integrated. A key aspect of the financing was the long-term securing of the earning potential through the extension of the existing hotel lease agreement. The diversified tenant structure generates additional income from the commercial spaces, office units, and other ancillary uses.
Strategic factors for the financing
The successful placement of the financing was significantly facilitated by several factors. These include the owner's sustainable investment strategy, the hotel's established operator structure, and its strong market position. The Bautzen location benefits from its tourist importance within Upper Lusatia. Additionally, stable demand from business travel contributes to the attractiveness of the location. Good transport links to Dresden and Görlitz underscore this positive assessment.
Ralf Sieber, Senior Consultant at PA GmbH, commented on the transaction. He stated that despite a challenging financing environment, banks and financing partners remain open to high-quality hotel properties. He cited a long-term operator perspective, reliable cash flows, and a sustainable investment concept as crucial criteria. The Best Western Plus Hotel in Bautzen particularly fulfils these requirements, according to Sieber.
Future prospects and location security
With the successful completion of the refinancing, the long-term financing of the property is secured. This creates a stable foundation for the further development of the hotel location and underscores the attractiveness of properties with solid structure and location in the region.
