Three-star “Novum Style” hotel in central location; 20-year lease agreement, plus two five-year extension options.
Commerz Real has acquired a future hotel complex in Frankfurt am Main is to be operated as a Novum Style hotel. With approx. 6,600 m², the property is located in close proximity to the central station and is expected to have 190 rooms, a sky bar as well as 39 parking spots, upon its completion before summer 2019. A lease agreement over 20 years has been signed with the Novum Hotel Group, including two additional five-year extension options for the operator. The Frankfurt-based project development company Gold.Stein real estate M+E GmbH & Co. KG is the property’s seller. The contract details will remain undisclosed. After construction by the Adolf Lupp GmbH + Co KG as general contractor, Commerz Real is going to integrate the property into the public real estate fund “hausInvest”.
"The Novum Style in Niddastrasse is not just well suited for increasing the hotel number in the portfolio and so spreading risk, but also contributes to diversification as part of our engagement“, explains Robert Bambach, Chairman of Real Estate Transactions at Commerz Real. The design-oriented hotel will include a lifted construction and equipment quality, thus increasing the midrange segment within the fund’s portfolio.
The Hamburg-based Novum Hotel Group operates 84 properties with more than 8,000 rooms throughout Europe. The quickly growing family-owned company’s revenue 100 million euros in 2015 and is projected to grow to €120 million by the end of 2016. "We are proud to have been able to secure this excellent property in close proximity to Frankfurt’s central station for our Novum Style concept. The location fits perfectly into our expansion profile, and through our confident cooperation with all project participants, we are eagerly looking forward to a new-generation Novum Style hotel“, states David Etmenan, CEO and owner of the Novum Hotel Group.
The Commerz Real organized the acquisition as an asset deal in the form of a forward funding. This means that Commerz Real has purchased the plot with a building obligation and payment will be done gradually with every construction progress milestone. "That way, we were able to secure this attractive item early and to extremely attractive conditions for our investors“, says Bambach.
Future of Historic Hotel Arosa Secured
After the present tenant of the object, the Libertas Essen GmbH, decided not to extend the lease after 30th June 2016 and ceased operations on 26th June 2016, the future of the traditional Hotel Arosa at Ruttenscheider Strasse 149-151 in Essen-Ruttenscheid remained unclear.
The manager of the property’s new owner, Gunnar Marx of MARX City Investor GmbH & Co. KG, explains: "Our know-how and expertise lie in unambiguously in retail and housing when it comes to the real estate economic area – in the past, we have utilized our acquired, mixed-use objects including hotel operations for other uses, after leases ran out. This is also true for the rooms of Hotel Arosa, where we intensely checked other, different utilisation possibilities, such as residences, offices and retail stores. The alternative planning is now complete."
The hotel Arosa in Essen-Ruttenscheid is known to every local citizen – in 1966, the hotel was founded where Franziskastrasse and Ruttenscheider Strasse meet. The brightly shining building is respresentative for the whole part of Essen-Ruttenscheid. Prominent guests like the Rolling Stones stayed in the hotel in the past.
“To us, having the best interest of our employees was a matter of heart", says Gunnar Marx, “which was also one of the reasons why we decided to continue operating the hotel at this point."
The new tenant of the property is the Novum Hotel Group which will operate the hotel under the name “Novum Hotel Arosa“ in the near future. “We love hotels steeped in tradition", explains David Etmenan, Chief Executive Officer and Owner the Novum Group, regarding the takeover. “In October 2016, we start with the Hotel Handelshof in Kettwiger Strasse – where the parents of Heinz Ruhmann had already led this traditional house – and the Rolling-Stones have stayed at the Arosa. Tradition is very important to us!"
The whole hotel is going to be modernised. Among other changes, 64 old bathrooms are to be renovated, in order for the rooms to be up to date with today’s standards. The reception will be moved to the first floor and the hotel will receive a new, modern entrance on the side of Franziskastrasse.
The Novum Hotel Group is already operating the Novum Hotel Ambassador, the Handelshof follows in October 2016 and next year, the new building of the Novum Style Hotel Essen within the Europacenter will complement the portfolio in Essen. “With that, we are represented in Essen with four hotels and can generate appropriate synergetic effects", explains David Etmenan further.
There is a seamless crossing: The Novum Hotel Group takes over the hotel Arosa on 1st July 2016.
“Despite already operating eighty hotels throughout Europe, we were never able to negotiate a lease so quickly before like the one for Hotel Arosa. This is because we are a family office and our lessor, the MARX City Investor GmbH & Co. KG as a tenant – also a Family office – has nearly identical structures to ours. If both partners know precisely what they want, then even nowadays, an agreement can be reached pretty fast", according to David Etmenan.
The building at Ruttenscheider Strasse 149-151 is thus completely rented: On the ground floor, the catering trade companies Baba Green and Vapiano will open individual branches and the travel agency First will remain as a tenant within the object. “We are now only waiting for the planning permission – then the rebuilding can begin on the ground floor and then we can start turning our ambitious plans into reality" explains Gunnar Marx, managing companion of MARX City Investor GmbH & Co. KG.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
