Warimpex and Starwood Capital Group announce groundbreaking for first budget hotel in Wroclaw (PL)

Real estate investors Warimpex and Starwood Capital Group today launched construction of the first Campanile and Première Classe budget hotels in the center of the city of Wroclaw, Poland. Eiffage Budownictwo Mitex was selected as the general contractor for the two hotels, and the construction of 152 Campanile rooms and 136 Première Classe rooms is due to be completed in December 2011. The hotels will be operated by Louvre Hotels.

Campanile Wroclaw

Construction is due to be completed in December 2011.

"This groundbreaking marks the actual start of our plan to bring business hotels that offer excellent services and amenities at a very attractive price to Central and Eastern Europe. The great demand for this category of hotels especially in cities with strong growth potential and an underdeveloped hotel market not only promises future success. This step is also important for further diversifying our existing asset portfolio so we can respond optimally to possible market fluctuations," said Christian Fojtl, Warimpex board member responsible for budget hotel development.

"We are excited to be commencing the construction in such a good, central location for the Wroclaw Campanile and Première Classe hotels. The Campanile, Kyriad and Première Classe brands of our affiliate Louvre Hotels already have a strong recognition from their existing ten operating hotels across Poland. The opening of these new hotels will broaden our offer across Poland of excellent quality accommodation, priced at a great value," added Desmond Taljaard, COO Europe for Starwood Capital.

Warimpex and an affiliate of Starwood Capital Group have created a strategic joint venture (50/50) to develop budget hotels of the well-established and successful brands Campanile and Première Classe in Central Europe, all of which will be operated by Louvre Hotels. The joint venture will focus on Poland, the Czech Republic, Hungary and Slovakia, with the possibility of expanding into other countries in the region.

In addition to the two hotels in Wroclaw, the joint venture has five more hotel projects in the pipeline across four sites – Zielona Gora, Bydgoszcz and Katowice in Poland and Budapest in Hungary.

Current development projects at a glance
• Campanile hotel, Wroclaw (152 rooms)
• Première Classe hotel, Wroclaw (136 rooms)
• Campanile hotel, Zielona Gora (84 rooms)
• Campanile hotel, Budapest (284 rooms)
• Campanile hotel, Bydgoszcz (117 rooms)
• Campanile hotel, Katowice (110 rooms)
• Première Classe hotel, Katowice (90 rooms)

Source: Warimpex

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