EXTENDAM INCREASES ITS HOTEL PORTFOLIO IN GERMANY AND THE BENELUX
Extendam has added to its portfolio in Western Europe with the ibis Styles Arnsberg Sauerland in Germany and two “Hotel Not Hotel” establishments in Amsterdam and Rotterdam
The ibis Styles Arnsberg Sauerland is an 83-room, 3-star hotel in the heart of North Rhine-Westphalia, Germany. With 18 million inhabitants, this is Germany’s most populous region, boasting some 23% of the country’s population and its strongest economy. Indeed, its impact extends beyond Germany’s borders, as it is also the leading region in the EU in terms of GDP.
The hotel therefore enjoys a strong footing in a densely populated, vibrant economic area, and will benefit from the expertise of SomnOO, the Franco-German hotel management group responsible for its operation and one of Accor’s main franchise operators in Europe. This is Extendam’s eighth transaction with this partner and its fourth acquisition in the economy hotel sector in North Rhine-Westphalia over the last four years.
“Germany, and especially North Rhine-Westphalia, are much sought-after, prime real-estate areas for economy hotel investments. With domestic customers accounting for 90% of their business, economy hotels are extremely resilient and this was proven during the recent health crisis. In fact, business remained so profitable, even during the first lockdown, that we chose not to close any of our hotels in the region.
We are expecting a strong and, above all, rapid recovery,” explains Anna Cohen, the Extendam Investment Manager responsible for the project.
Hotel Not Hotel establishments in the Netherlands
The Hotel Not Hotel investments will involve acquiring a hotel in Amsterdam and starting renovation and extension work on a Rotterdam hotel, increasing its capacity from 36 to 51 rooms.
Hotel Not Hotel is a Dutch group. It was co-founded in 2014, by Bruno Bont and Tijmen Receveur, with the idea of providing not just hotel rooms but works of art, with their own history and identity. No two rooms are alike; they are reminiscent of small cottages incorporated into a large common space comprising an exhibition hall and relaxation areas. Most of the rooms in the Amsterdam hotel were custom-designed by Collaboration-O, a group of young designers from the Eindhoven Design Academy, and by Arno Coenen who will also be working on the Rotterdam hotel.
Both hotels enjoy safe and strategic locations, whether in Amsterdam, with high volumes of both business and leisure travellers, or Rotterdam, the industrial hub of the Netherlands, in the city centre, just beside the train station.
“This investment is perfectly in tune with our strategy to support new hotel concepts that represent the hotel industry of the future. The Hotel Not Hotels in Amsterdam and Rotterdam break with traditional hotel codes to meet the expectations of a younger clientele, in particular through their large, comfortable common areas that entice guests out of their rooms with a wide and varied food and drink offering. These city-centre establishments are resolutely turned towards their local area and attract nearby customers through top-quality service, food and drink,” says Cécile Leclerc, Extendam Investment Manager
“We are delighted to have been able to seize these opportunities. The transactions were negotiated in the midst of the Covid crisis, though we do not feel the crisis will have an adverse impact on them due to the timing and the five- to six-year exit strategies. We hope to exceed our projected internal rate of return whilst implementing particularly conservative business plans,” concludes Jean-Marc Palhon, Chairman of Extendam.
