Developed by DIEAG, the complex currently under construction was initially intended to be 100% office space. DIAEG finally chose Novum Hospitality to operate two thirds of the leased space, i.e. 12,400 sq. meters.
The two buildings will be used to accommodate 150 rooms under the niu Hotels group's own brand, which is firmly rooted in its neighbourhood. Novum Hospitality already operates 40 hotels under this name.
In order to optimise the efficiency of the spaces, the second building will house an acora Living the City residence, also a Novum Hospitality Group brand. This space will offer 175 flats. The group already operates 4 locations under this concept. This will be the second acora Living the City address in the German capital.
This arrival of hotel space requires expansion work, which is scheduled for completion in the summer of 2024.
This development illustrates the attractiveness of the hotel business for property developers and investors who expect higher returns on their assets. Post Covid, office space is now being used differently with less pressure on assets due to the development of teleworking. Changing the use of an asset allows activity and yield to be maintained, while developing mixed use in destinations.
On a European level, Novum Hospitality claims 150 hotels in 60 destinations in Germany, Austria and the Netherlands.