Commerz Real buys two hotels in Mann-heim from developer GBI AG for openended real estate fund hausInvest

A 4 star business hotel for Spain’s NH Group and a budget hotel for Novum Hotel Group purchased / Completion of both hotels with a total of 393 rooms planned for the end of 2018 / Centrally located on Seckenheimer Straße with excellent transport links / Positive development of the Mannheim hotel market

Commerz Real has acquired two hotels under construction in Mannheim for its openended real estate fund hausInvest from the project developer GBI AG. The properties in question are a 4 star business hotel for the NH Group with 225 rooms and a budget hotel for the Novum Hotel Group with 168 rooms. Both hotels are located on Seckenheimer Straße, in close proximity to the central railway station and to Mannheim city centre, and also have favourable connections to the city’s main arterial roads. Completion is planned for the end of 2018. “Mannheim is at the heart of the Rhine-Neckar metropolitan region, one of the strongest economic areas in Europe, and is increasingly attracting business travellers and tourists,” explains Andreas Muschter, Chairman of the Board of Managing Directors of Commerz Real. “By investing in hotels for precisely these two target groups, we are offering our investors the opportunity to participate in this growth and, at the same time, we are diversifying our portfolio.” In addition, thanks to longterm fixed lease agreements with the respective hotel operators, the earnings are reliably calculable and secured.

In the opinion of Reiner Nittka, the Chief Executive Officer of GBI AG, the location on Seckenheimer Straße on a plot of land acquired from the City of Mannheim will develop excellently: “The two hotels are in different categories, have differing concepts, and thus complement each other in an ideal manner. Business travellers and tourists both have an ideal starting point for their activities and depending on their requirements and preferences can choose between the two hotels.” As the largest hotel developer in the German metropolitan regions GBI AG also sets store by Mannheim as a location. Reiner Nittka: “The key market ratios have improved very clearly here. This trend has been unbroken for several years now.” According to calculations by the international market research company STR Global, the average daily rate (ADR) increased by 5.3 per cent in the 12 months to the beginning of 2017, from 83.00 to 87.40 euros. As the hotels saw greater capacity utilisation, the revenue per available room (RevPAR) increased by as much as six per cent, from 52.40 to 55.10 euros.

The design of the hotels was decided on following an architecture competition organised together with the City of Mannheim, with the jury opting for the design by the company prasch buken partner architekten (pbp) from Hamburg with façades incorporating red sandstone. An important factor for the jury was the fact that the façades had differing structures, thus ensuring each hotel had its own face. The offering of NH Hotel Mann-heim includes a restaurant, a bar, conference rooms for up to 300 persons, and a fitness area. The neighbouring Novum Hotel is to be managed under the new “niu” brand, with modern compositions and special bathroom concepts. The “living lobby” with a contemporary food and beverage concept is to become a local meeting point, catering to hotel guests and neighbourhood guests alike.