Peakside Capital Advisors (Peakside) has acquired the luxury hotel Hessischer Hof and an adjacent office property in Frankfurt from the Hessische Hausstiftung.
The properties will be part of Peakside Real Estate Fund IV.
The Grand Hotel at Friedrich-Ebert-Anlage 40 was built in 1952 on the site of the city palace of Wolfgang Prince of Hesse. The property with a gross floor area of approx. 12,330 m² has already been extensively renovated by the seller over the past ten years.
The building, previously operated as a 5-star hotel, has 121 rooms and suites, a 180 m² presidential suite, eleven function rooms, a restaurant, a bar, four terraces, a winter garden, a spa and fitness area with a view of Frankfurt roofs and 80 parking spaces.
The adjoining office property at Beethoven Strasse 5 covers 560 m² and is let to two smaller companies. After they move out, it will be renovated and rented out again.
Boris Schran, Managing Partner of Peakside, said: “The Grandhotel Hessischer Hof was an institution in Frankfurt’s luxury hotel industry – and the hotel is set to become one again. We are convinced that the established hotel location directly at the trade fair and the festival hall make this extraordinary property a very good investment for our PREF IV fund. We are planning a refurbishment and repositioning with a new operator.”
Simon Lutz, Partner at Peakside, added: “We are already in initial talks with potential hotel operators and have received very positive feedback on our plans for the Hessischer Hof. In addition, we are planning to revive a legend of Frankfurt nightlife, Jimmy’s Bar, in the near future.”
Donatus Landgraf von Hessen commented: “We are very happy that the Grandhotel Hessischer Hof will remain as a hotel business and that we have found a suitable buyer in Peakside, whose ideas and plans convinced us from the start and who is responsible for the wonderful success story of the house wants to continue. We wish the Grand Hotel all the best for the future.”
Peakside had secured the first investment for PREF IV in February with the purchase of a 5,400 m² office property in Frankfurt’s Westend-Nord.
Peakside said the total investment target of the fund is over €1.2 billion. ”The focus is on German real estate with value-add potential, regardless of the asset class. The ticket size is between 30 and 200 million euros.”