limehome, is enhancing its portfolio by converting underperforming hotel properties in key European cities. This strategic move focuses on addressing cost pressures faced by traditional hotel operators, including rising rents and labor costs, while maximizing space efficiency and operational flexibility.
New hotel conversions in European cities
limehome's latest hotel conversions include key projects in Germany, Italy, and Spain, with a focus on city-center locations in major tourist destinations. These developments highlight the company’s commitment to expanding its presence in top-tier European markets.
- Berlin, Germany: In fall 2025, limehome will open a newly converted property in the capital, following the successful conversion of the Gold Hotel in Berlin-Friedrichshain in 2024. This project will add 42 new units to the limehome portfolio. The initial Berlin conversion achieved an impressive 93% occupancy rate, reflecting the market demand for limehome’s design-driven accommodations.
- Bari, Italy: limehome is set to revitalize two adjacent three-star hotels in Bari, a southern Italian port city known for its historic charm. These hotels, located on Via Piccinni and Via Roberto da Bari, will be reopened by mid-2026, offering a fresh option for visitors seeking design-focused accommodations near the city center.
- Benidorm, Spain: On Spain’s Costa Blanca, limehome will convert the former Hotel Centro Mar into functional design accommodations. Scheduled to open by October 2025, the project will provide a new hospitality option in this popular Spanish beach destination, while recently limehome, expanded in Spain and especially in the province of Cadiz.
- Jena, Germany: Another hotel conversion is underway in Jena, a city in Thuringia. limehome plans to convert a former Ibis hotel into modern accommodations, with the project set to open in summer 2025.
Addressing market challenges through hotel conversions
limehome’s focus on hotel conversions aligns with broader market trends, including the increasing pressures on hotel operators due to rising operational costs.
« A significant portion of the estimated seven to eight million hotel rooms in Europe is outdated. At the same time, operating costs have increased by approximately 40 percent. As rental agreements expire, the pressure on tenants is enormous. In this scenario, improving efficiency and modernizing existing properties is crucial to ensure the economic viability of these assets.” - Dr. Josef Vollmayr, limehome’s co-founder and co-CEO
limehome’s model maximizes space efficiency, increasing net lettable area to around 70% compared to conventional hotel concepts, which typically offer around 50%.
Diversified projects across Europe
In addition to hotel conversions, limehome is also expanding through new construction projects. The company is building nearly 400 new units across Spain, including Madrid, Barcelona, and Burgos. These projects complement limehome’s growing portfolio and its approach to flexible, tech-driven hotel solutions.
“Our tech-enabled concept combined with deep conversion expertise provides a needed solution for underperforming hotel assets,” “Hotel conversions already represent up to 15 percent of our portfolio and the trend is rising. Due to the increasing cost pressure faced by operators from the mid- to upscale segment, we expect a significant rise in conversion projects within our portfolio over the next few years. The same applies for hotel takeovers.”- Dr. Josef Vollmayr, limehome’s co-founder and co-CEO
limehome’s combination of hotel takeovers, conversions, and new constructions allows the company to diversify its European portfolio, meeting the demand for modern, flexible accommodations in prime urban locations. As the trend for hotel conversions continues to rise, limehome is positioning itself as a key player in transforming the European hotel market.
