DEMIRE wins Premier Inn for Kassel’s Kurfürsten Galerie

Langen, Kassel, 22 September 2022.  DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has won a Premier Inn hotel for its Kurfürsten Galerie in the central German city of Kassel. With this deal, the mixed-use complex is acquiring a new and highly desirable anchor tenant of international renown.

The Kurfürsten Galerie in the city centre of Kassel has been a DEMIRE portfolio holding since 2015. The mixed-use complex, which originally opened in 1991, offers total rental space of some 20,000 m²., of which approx. 9,000 m² is dedicated for hotel usage. Retail shops, restaurants, medical practices, offices, apartments and the Spielbank Kassel casino are spread over the remaining 11,000 m².

The hotel within the Kurfürsten Galerie, originally operated by Mövenpick and later by Best Western Group, is to be extensively modernised under the changeover to the new hotel operator, including design changes as well as upgrades to meet to current technical requirements. The planned conversion programme will increase the number of guest rooms from 128 to 165.

“We are absolutely delighted that we have been able to win such a strong partner as Premier Inn for the hotel in the Kassel’s Kurfürsten Galerie,” says Ingo Hartlief, Chief Executive Officer of DEMIRE. “Premier Inn offers a fresh design concept and compelling offerings for guest accommodations, two elements that fit perfectly with the Kurfürsten Galerie’s concept of an attractive and exciting mix of offerings.”

“The city of Kassel has been on our target list for hotel locations in Germany for quite some time now.” adds Chris-Norman Sauer, Acquisitions Director for Premier Inn Germany. “There is demand for quality guest accommodations not only because of the city’s cultural attractions but also because of its role as the core of an economically strong metropolitan area. This double attraction is an important consideration for us because it underscores the growth potential of the Kassel market for hotel accommodations.” 

Premier Inn currently operates 42 hotels throughout Germany. The brand has already signed contracts for an additional 36 locations towards the goal of 400 hotels in Germany.

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About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 June 2022, DEMIRE's portfolio contains of 64 assets with lettable space totalling about 1 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to so approximately EUR 1.7 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.