Modern digital hotel in the center of Bremen.
The hotel has 50 rooms.
Deal structure: Share Deal/Forward Deal.
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).
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%.
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.
- 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.
Notary (state registration) is 1.5–2%.
Acquisition tax is 5%.
Brokerage fee is 4% + VAT 19% (total 4.76%).
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.