Peakside Capital Advisors AG has boughtHessischer Hof, a luxury hotel with an adjacent office building, in Frankfurt from Hessische Hausstiftung, a foundation of the House of Hesse. The property will become part of the Peakside Real Estate Fund IV.
The luxury hotel at Friedrich-Ebert-Anlage 40 was built in 1952, replacing the former city palace of Prince Wolfgang of Hesse-Kassel. The property with 12,330m² of GLA has been comprehensively refurbished by the seller over the past ten years. Previously operated as a 5-star hotel, the building includes 121 rooms and suites, a 180m² presidential suite, eleven event and meeting rooms, a restaurant, a bar, four terraces, a winter garden, a spa, and fitness area with a view over Frankfurt’s rooftops and 80 parking spaces. The adjacent office building in Beethoven Strasse 5 encompasses 560m² leased to two tenants. It will be fully refurbished and re-let after their contracts expire.
Boris Schran, Managing Partner at Peakside, said: “Hotel Hessischer Hof iconic in Frankfurt’s luxury hospitality market – and it will be reinstated as such. We are convinced that the established hotel location close to the Trade Fair and Festhalle, a multi-purpose arena, makes the property an exceptional investment for our PREF IV fund. We are planning to refurbish the asset and reposition it with a new operator.”
Simon Lutz, Partner at Peakside, added: “We have been talking to several potential operators and received very positive feedback on our plans for Hessischer Hof. Additionally, we are planning a timely revival of a Frankfurt night life icon, Jimmy‘s Bar.”
Peakside had secured the first investment for PREF IV in February with the acquisition of a 5,400m² office building in Frankfurt’s Westend-Nord district. The company targets a full investment volume of €1.2bn for the fund. The focus lies on German properties with value-add potential across all asset classes. Ticket sizes range from €30m to €200m.
