Heureka Real Estate acquires site in Heidelberg for hostel project

by   CIJ News iDesk III
2021-09-14   08:40
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A Heureka Real Estate GmbH (Heureka) project company has acquired a 1,300 sqm site in the Weststadt district of Heidelberg, very close to the central railway station. The vendor is Kommunalprojekt ppp AG. ReedSmith acted as advisor to the purchaser.

Although the hospitality industry has been hit particularly hard by the negative effects of the Corona pandemic, the experienced Darmstadt-based developer is planning to construct a five-storey hostel with 112 rooms, providing a total of 320 beds. Construction is scheduled to start in mid-2022.

a&o Hostel GmbH, Europe’s largest privately-run hostel chain with 40 hostels in 24 cities, has already signed a 20-year contract to operate the new facility.

Robert Waidhaas, Managing Director of Heureka, comments: "Even in this very difficult time for the hotel industry, we at Heureka remain committed to our slogan Identifying potential - developing value'. Particularly in this challenging situation, we are confident that well-positioned and experienced market players like us are optimally placed to identify and exploit existing opportunities. What’s more, Heidelberg, one of the best-known tourist hotspots in Germany, is experiencing high demand from both users and operators. It remains in the focus of the real estate investors."