Hotel with a new long-term lease in Bremen, Germany

Additional information is provided after the signing of an NDA

Hotel with a new long-term lease in Bremen, Germany

4,000,000 €
Mortgage calculator
Learn the property location
Send the listing to yourself
  • Yield
    6.0%
  • Built in 
    1950
Details
Property parameters
  • Total rooms: 50
Financial performance
  • Minimum owner's capital: 4,000,000 €
  • Annual income: 240,000 €
Tenants
  • Fully let
  • End of lease: 2031
Property status
  • Most recent total renovation: 2010
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 5.0%
  • Broker: 4.0% + VAT

Modern digital hotel in the center of Bremen.

Description

The hotel has 50 rooms.

Deal structure: Share Deal/Forward Deal.

Completion: 2021.

Modern concept of a digital hotel:

  • saves time and gives guests independence (online check-in, access to rooms with coded Wi-Fi locks, booking via App or online, integration of Hotel PMS, etc.)
  • improves financial performance (minimizing staff costs)

Less than 10 years ago, the building was completely rebuilt (excluding the supporting constructions).

Financial performance

Current annual income (2021–2022) — 240,000 €.

Current yield (2021–2022) — 6.0%.

Annual income (starting from 2023) — 255,000 €.

Yield (starting from 2023) — 6.4%.

Tenants

The building is fully leased. The tenant is one of the fastest growing European mid-range hotel operators.

The new lease for a period of 10 years (extension 2 x 5 years) will be concluded in December 2021.

Advantages

  • Reasonable price.
  • Above-average yield (market standard for hotels ~ 5%).
  • A long-term lease with a rental rate without reference to fluctuations in the tenant's revenue.
  • Good condition of the building.
  • Prime location.

Transaction costs

Notary (state registration) is 1.5–2%.

Acquisition tax is 5%.

Brokerage fee is 4% + VAT 19% (total 4.76%).

Location

The building is located in a dynamic business district of Bremen.

There are plenty of restaurants, cafes, and parking lots around. You can walk to the city center in 15 minutes or take a tram, the stop is located right outside the building. Bremen Airport is 5 km away, passenger traffic in 2019 — 2.3 million people.

Bremen is the capital of the German state Free Hanseatic City of Bremen. The city has a population of 560,000 people. Bremen is located 60 km from the North Sea. The ports of Bremen and Bremerhaven together are the 4th largest container hub in Europe. Bremen has the highest percentage of exports of all German states — 65.4%.

The economy of Bremen has four key sectors: the automotive sector, the maritime economy and logistics, wind energy, and aerospace. Bremen is home to companies such as Airbus, BLG Logistics Group, ArcelorMittal, and Atlas Elektronik. Almost 22,000 companies provide more than 325,000 jobs. The largest private employer is Mercedes-Benz (12.7 thousand workers). Bremen has a long commercial tradition — the city has more than 700 stores, 200 restaurants and 50 cultural and entertainment venues.

Bremen's GDP in 2019 was about 33.62 billion euros.

  • Property on the map
    Location right down to the building, street or city

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
6.0%
8—10%
Investment budget
4,000,000 €
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
Request the relevant projects

Similar listings

We select ads that may interest you.

Not sure what to start with? Send an advice request
Our expert will contact you to help with selecting real estate.
Ask a question
    I confirm that I have read and accept the Privacy Policy and Personal Data Processing Guidelines.
    Andrei Burak,
    investment specialist
    Send a request