Hotel with a 20-year lease in Frankfurt am Main, Germany

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Hotel with a 20-year lease in Frankfurt am Main, Germany

40,000,000 €
10,389 € /m²
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  • Total area
    3,850 m²
  • Yield
    3.6%
Details
Property parameters
  • Total rooms: 150
Financial performance
  • Annual income: 1,440,000 €
Tenants
  • Fully let
  • End of lease: 2039
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 6.0%
  • Broker: 3.0% + VAT

Hotel with commercial spaces in one of the top locations in Frankfurt.

Description

The hotel building is in excellent condition.

The hotel includes 150 rooms. The total area of the hotel is about 3,850 m².

Tenants

The tenant is a well-known hotel operator who manages more than 100 hotels.

The lease agreement is valid for 20 years + renewal option for 2x5 years.

Location

The property is located in one of the popular areas of Frankfurt, not far from the Frankfurt Messe exhibition complex.

Frankfurt am Main is the largest city in the land of Hessen and the 5th largest city in Germany. Its population is more than 730,000 people. Frankfurt is the center of commerce, culture, education, tourism and a transport hub. Frankfurt is the 2nd city in Germany and the 48th in the world in terms of the cost of living (Mercer Human Resource Consulting).

There are about 43,000 companies in Frankfurt. The city is the site of many global and European corporations: Nestlé Deutschland, LinkedIn, Kern AG, Lufthansa Consulting. Messe Frankfurt — the 3rd largest international exhibition center in the world, has more than 800-year history. Annually Messe Frankfurt holds more than 100 exhibitions around the world.

Frankfurt International Airport is among the 10 largest in the world, its passenger traffic is more than 54 million people a year.

There are the world's largest educational institutions in Frankfurt, including the world-famous Goethe University with more than 44,000 students (2018).

  • Property on the map
    Location right down to the building, street or city
  • Other properties
    Other offers nearby

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

The terms and conditions of our engagement depend on the condition and location of the property and are to be discussed in each particular case.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a hotel purchase with a construction loan

Investment vehicle
Hotel
Construction loan
Yield per annum
3.6%
8—10%
Investment budget
40,000,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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