The independent management company, investing in budget and midscale hotel projects in Europe, continues to develop its portfolio in Germany and the Netherlands. It thus invested in an ibis Styles hotel in Germany and two Hotel Not hotel properties in the Netherlands.
Located in Arnsberg, in the Neheim-Hüsten district, the Ibis Styles Hotel Arnsberg Sauerland benefits from an excellent location: near the Kaiserhaus congress centre, 3 minutes from the A46 motorway and 10 minutes by car from Arnsberg’s city centre. It features 83 three-star rooms, with contemporary decor, and free parking. Its location in the heart of North Rhine-Westphalia, the most populous land in Germany and a leading economic centre on a European scale, allows it to attract a large tourist clientele.
The establishment will be operated by the Franco-German hotel management group SomnOO, one of Accor's main franchise operators in Europe. The Ibis Styles hotel is Extendam's fourth budget hotel acquisition in North Rhine-Westphalia in 4 years.
Regarding this project, Anna Cohen, Extendam director in charge of investment said:
“Germany, and North Rhine-Westphalia in particular, is a prized and privileged area for investment in budget hotels. With more than 90% of domestic customers, budget hotels benefit from an extremely strong resilience that has been confirmed during the last 14 months of the health crisis. So much so that we have chosen not to close any of our hotels in this zone because they have maintained a profitable activity, including during the first confinement. In this context, we anticipate a significant and above all rapid recovery in this way out of the crisis announced and hoped for by all.”
Extendam will also acquire the walls of the Hotel Not Hotel Amsterdam and invest in the refurbishment and expansion works of Hotel Not Hotel in Rotterdam. Opened in 2014, the Hotel Not Hotel Amsterdam has 23 rooms with a modern and original decoration by Collaboration-O, Arno Coenen and IRIS as well as a Kevin Bacon bar open to the public. The Hotel Not Hotel Rotterdam will be extended from 36 to 51 rooms, also decorated by Arno Coenen.
Hotel Not Hotel is based on a hotel-hostel concept consisting of rooms inserted in large common areas that may include exhibition rooms or spaces for work or relaxation.
Cécile Leclerc, in charge of investment at Extendam explains:
"This investment is part of our support for new hotel models and concepts, representative of the hotel industry of tomorrow. Breaking with the codes of the classic hotel industry, the Hotel Not Hotel establishments in Amsterdam and Rotterdam are in line with the new expectations of a younger clientele, with in particular the development of large playful common spaces that invite the customer to get out of their room thanks to a diverse range of Food & Beverage services. In the heart of the city, these hotels are and will be resolutely open to their neighbourhoods, which allows them to attract a local clientele, in particular thanks to this range of quality services and F&B. "
“We are happy to have been able to seize these opportunities. These operations were negotiated during the health crisis and should, we hope, be little or no impacted by the Covid-19 crisis, given the investment date and the exit targets of 5 to 6 years. We hope to reinforce our expectations of internal rate of profitability, while maintaining particularly conservative business plans ",
concludes Jean-Marc Palhon, Chairman of Extendam.
