Company set to focus on expansion as German openings increase

Adina’s European portfolio -
Adina Apartment Hotels, Europe’s newest developer, owner and operator of upper market apartment hotels, has announced the launch of its latest properties to open in Germany.

The Adina Frankfurt Neue Opern opened on 26th September 2009 with 134 apartments over 15 floors, followed by the Adina Berlin Hauptbahnhof on 9th November with 139 apartments. Both properties have all of Adina’s usual features; apartment living with hotel service, pool, gymnasium, conference facilities and bar/restaurant. These locations also include spectacular penthouse accommodation with views across the city and the river in Frankfurt, and to the Reichstag in Berlin.

Adina has two further properties under construction in Germany; the Adina Apartment Hotel Berlin Hackschermarkt (145 apartments); and the Adina Apartment Hotel Michel, Hamburg (128 apartments), both due for completion in mid-2010. This will bring the number of Adina hotels in Germany to five, with further hotels in Copenhagen and Budapest.

Adina’s Director for Europe, Andrew Hunter, said: “We are delighted with how well our properties have performed despite the difficult times. Occupancy at our Adina Apartment Hotel Checkpoint Charlie in Berlin – our first property to open in Germany – averaged 80% over the last 12 months. We can expect further improvement over the next two years as the property achieves stabilized performance and our brand becomes better recognised by consumers.”

A significant €30m debt facility secured with Westdeutsche ImmobilienBank AG earlier this year for the financing of two new hotels in Berlin, in addition to existing finance facilities with FIH Bank, is testament to Adina’s strength and investors’ confidence in the brand.

With a committed investment in excess of €180m for their hotels in Europe, Adina is looking to become the premier operator in Germany with plans to enter the UK and other core European markets such as France and Spain in the future. For investors, Adina believes its attraction lies in its proven ability to maximise performance through efficiency and operate with lower volatility compared to traditional hotels – smoothing out income fluctuation through seasonal and economic cycles.

Hunter concludes: “Each of Adina’s properties have shown that they can achieve RevPAR close to five star hotel performance within the first 12 months of opening – the result of a combination of a quality product and professional, efficient management.”

Adina is privately owned and currently funded by its parent, The Toga Group in Australia. Adina has been operating in Europe for seven years, starting with the launch of the Adina Apartment Hotel Budapest in Hungary. Adina is the vision of Toga’s Managing Director, Allan Vidor, who saw the opportunity to become the first pan-European, professionally managed, corporate quality apartment hotel brand.

When launching Adina, Vidor selected a local team with experience of working in Europe, to create a confidence around the brand. This, combined with the strength of the product that has been developed specifically for the European market and embraces the current ‘mega-trend’ for extended stay accommodation, supports Hunters’ envisioned growth for the brand.

Adina is a pan-European corporate quality product. As well as ample space – Adina’s average standard one bedroom apartment module is over 42 m2 - guests can enjoy the many essential services expected from quality hotels such as restaurants, a fully equipped gymnasium, swimming pool, sauna, spa, meeting facilities and minibar. Other services also include 24 hour reception, undercover parking, same day dry cleaning and laundry service.