Jones Lang LaSalle Hotels is pleased to announce the sale of the Swiss™tel, Brussels to City Hotels S. A.
The former owner, Banimmo Real Estate, instructed Jones Lang LaSalle Hotels to sell the property following a strategic decision to divest itself of non-core assets. The property which consists of the 262-room Swiss™tel hotel, the adjacent 57 room Swiss™tel Residence and the World Class Health Academy, attracted significant interest from a variety of both investors and operators. Robert Seabrook, Senior Vice President at Jones Lang LaSalle Hotels stated “strong investment demand was generated from a number of investor types including owner operators, opportunity funds, specialist hotel investment companies and private property companies”.
He adds “the hotel was sold with vacant possession, which was a major attraction, particularly for European operators”. Other selling features included the low capital expenditure requirements, prime location, expected average room rate growth and up-side potential from the serviced apartment facilities. Mr Seabrook explains “planning consent for the Residence was secured just before marketing commenced. This provided an opportunity for significant up-side potential for a new owner which is reflected in the initial yield achieved. The extended-stay market is becoming increasingly popular in Europe and City Hotels will be able to capitalise on the serviced apartments, positioning them as either short-term or longer term lets for the corporate market”.
According to Mr Seabrook the hotel has potential for substantial room rate growth. “The improving status of Brussels as Europe`s political capital will mean increased government and corporate-related demand - both of which are high yielding business”. Brussels` quality hotels currently achieve a room rate of approximately €110, well below other European capital cities such as London, Paris or Rome where the levels are €350, €245 and €175 respectively. “The increasing corporate demand in Brussels is likely to drive room rates further towards these other European cities” adds Seabrook.
Completed in 1995 and operated by Swiss™tel since February 1997, the hotel is centrally located in Brussels, adjacent to the European Parliament in the Quartier Leopold, with close proximity to European institutions, banks and international corporate offices. Additional facilities include up to nine conference and function rooms, 170 car-parking spaces, restaurant and bar and a separate health club facility.
City Hotels has chosen Marriott International to operate the property and will re-brand the hotel a Renaissance with the adjacent Residence building becoming a Marriott Executive Apartments. This is the second of City Hotels` properties in Brussels under management by Marriott International and will compliment the 218-room Brussels Marriott Hotel that City Hotels are currently developing adjacent to the Bourse which is scheduled to open next year.
Victor Hasson of City Hotels S. A. said : “It is a major achievement for City Hotels to add the Renaissance Hotel to its hotel portfolio in Brussels. We are very proud to be providing Marriott International two first class properties in the heart of Brussels. We are sure that Marriott management will enhance the value of our property.