Two strategic city-centre locations
Centralis Immobilien has acquired two currently vacant hotel buildings located at Breslauer Platz 2 and Domstraße 10 in Cologne. Both addresses sit in the immediate vicinity of the city’s main railway station (Hauptbahnhof) and Cologne Cathedral, two of the city’s major landmarks.
The properties come from the Crescendo portfolio, a set of hotel assets brought to market in recent months. The transaction strengthens Centralis’s portfolio in the segment the company refers to internally as “Modern Hospitality”.
From vacant hotel to serviced apartment
Both buildings will undergo a complete refurbishment to be converted into modern hospitality products aligned with current market standards. A total of 233 serviced apartments are planned across the two sites.
Operation of the future serviced apartments has been entrusted to Bob W, a Finnish operator specialising in flexible short- and mid-stay accommodation, already present in several European cities. The refurbishment works will be led by apoprojekt, acting as general contractor on both revitalisation projects.
An opportunistic acquisition strategy
Dr Fabian Vieregge, founder and managing director of Centralis, highlighted how the deal fits the group’s trajectory, saying that the double transaction perfectly illustrated the company’s acquisition and growth strategy. He noted that Centralis was taking advantage of the current buyer’s market to secure properties in the best locations across major German cities, which the company then converts into modern, sustainable hospitality products.
The German hotel market remains characterised by transaction activity below pre-pandemic levels, which Centralis says opens windows of opportunity for players positioned to transform high-potential assets.
A complex acquisition process and established partners
Felix Lorenz, Head of Investment at Centralis, discussed how the deal was handled, saying that following a lengthy acquisition process, the company had once again demonstrated its ability to analyse complex projects — from assessing the existing assets and their potential through to the planned transformation — while progressively bringing all its teams on board through to closing.
JLL and Cushman & Wakefield were jointly mandated as advisors on the transaction.
At a glance by The Hospitality Tribune
Centralis Immobilien’s double hotel acquisition in Cologne
– Deal: Centralis Immobilien acquires two vacant hotel buildings in Cologne, at Breslauer Platz 2 and Domstraße 10
– Source: assets acquired from the Crescendo portfolio
– Conversion: properties to be redeveloped into 233 planned serviced apartments
– Operator: Bob W appointed to manage the future serviced apartment portfolio
– General contractor: apoprojekt to lead the redevelopment works
– Advisors: JLL and Cushman & Wakefield jointly mandated on the transaction
