New Century sells the Holiday Inn Eindhoven to Somerset Capital
Main Photo: The Holiday Inn Eindhoven
Date: December 2019
Location: Eindhoven, The Netherlands
Name: Holiday Inn Eindhoven
No. of Keys: 207
Seller: Hong-Kong listed REIT New Century has sold the Holiday Inn Eindhoven to local real estate investor Somerset Capital Partners for €39.75 million. The property, which is leased to Eden Hotels and operated under a franchise agreement with IHG, was acquired by New Century in 2016 and will continue to be operated by Eden Hotels under its new ownership.
Buyer: Somerset Capital Partners recently purchased the Holiday Inn location in the centre of Eindhoven from New Century. The agreement concerns a share transaction of the Dutch company.
The Holiday Inn hotel, which is part of a total redevelopment location of 80,000 m², is strikingly situated on the corner of Pastoor Petersstraat, Fellenoord and Montgomerylaan, on the north side and a short walk from Eindhoven Central Station. The building, which dates from the early 1970s and has a gross floor area of approximately 12,000 m², is leased for many years to Eden Hotels, which have a franchise agreement with InterContinental Hotels Group.
“We are delighted with this purchase,” said Frans Landmeter, partner at Somerset. “This investment is located in the heart of Brainport, with a strategic location at the central station and has significant redevelopment potential in KnoopXL. This is a new type of investment for us, which proves that Somerset is also seriously interested in assets other than just logistics real estate, in which we have now become a major player. ”
Leon Dijkstra, owner and CEO of Eden Hotels adds: “I would like to participate in the creation of a completely new, striking city entrance in which we see an interesting ‘win-win’ situation and from which a special accommodation and operational growth for our company arises . We have every faith in this, whereby we have expressed the intention not only to limit our facilities to a high-quality hotel, but also to use it for long / short stay, congress / meeting facilities and the like ”.
Under the name ‘Eindhoven Internationale Knoop XL’ the station area of Eindhoven will undergo a serious transformation in the coming years. As one of the most important economic core areas of the Netherlands, the government wishes to give housing quality in the heart of the city a major quality boost. The government, the province of Noord-Brabant and the municipality of Eindhoven have concluded an agreement for this. According to Jos Roijmans, Spoorzone program manager: “The environment around the central station must become the calling card of Brainport Eindhoven, to which the identity of technology, design and knowledge is linked. The plans for the HIE location, together with E-district and similar initiatives, prove that our city enjoys serious interest from developers and international investors ”.
In the coming years, new office and residential buildings will be developed in the centre of the city, including where the Holiday Inn hotel is now located. The intention is for this central and image-determining location to be redeveloped in the long term with a mix of living and working space of approximately 80,000 m².
Furthermore, it is intended that the existing hotel be included in this development. Somerset, Eden Hotels, the municipality of Eindhoven and KCAP, the municipality’s supervisor for this district, will work together to realise the joint ambitions of all parties involved. Both local and international architects will contribute to this.
Price: €39.75m
Price per Key: €192,000
THPT Comment: Ambitious project that starts with a humble Holiday Inn, but leads to much bigger plans.
First Seen: Somerset website
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