CA Immo commences construction of Meininger Hotel in Salzburg
Today, Friday 22 October, is the day CA Immo – together with its project partners and representatives of the city of Salzburg – celebrates the commencement of construction on a new MEININGER hotel in Salzburg. Over the coming months, the existing structural shell at Fürbergstrasse 18-20 will be thoroughly renovated and converted into a hotel. CA Immo, the project sponsor and investor, will complete the budget facility with gross floor space of around 5,000 sqm – and hand it over to the German operator, the MEININGER Group – by February 2011. MEININGER will lease the 101-room hotel for a period in excess of 20 years. The budget hotel chain, whose main target group is young travellers, promises comfort and service at low prices. This formula has delivered international success for the Group, which now operates ten hotels in six cities; as recently as the start of October, CA Immo celebrated the ground-breaking for another MEININGER hotel, this time in Vienna. The new site in Salzburg is at the Zentrum im Berg, adjoining the shopping complex of the same name; the centre of town is a ten-minute walk away. CA Immo will be investing up to € 20 m in the two properties.
According to Oskar Kan, the managing partner at MEININGER, “We are particularly happy with our new site in Salzburg because it ties in very well with our strategy of international expansion. Only recently, we broke the ground for another MEININGER hotel in Vienna. The new property in Salzburg, the city of Mozart, will epitomise our business model of a central location, good quality and low rates. The hotel is scheduled to open in May 2011.”
Dr. Bruno Ettenauer, CEO of the CA Immo Group, added that, “We are delighted to have found a capable long-term tenant for the property in the form of MEININGER. We are able to develop the building in this way thanks to a constructive working relationship with both the MEININGER Group and representatives of the city of Salzburg.”
MEININGER is a budget hotel chain. Established in 1999, the company now has 10 properties, two of which are outside of Germany (in Vienna and London). In total, the group's hotels offer 3,188 beds at present. Thanks to a strategy of central locations, good quality and low rates, MEININGER has succeeded in expanding rapidly, doubling its turnover at least every two years over the last decade of operations. The company plans to maintain this strategy of expansion over the next five years. MEININGER received the European Hospitality Innovation Award at the end of 2009. With its AA rating in the Treugast Investment Ranking, MEININGER is marked out as a blue chip company. The group has head offices in Berlin.
About CA Immo
CA Immo was founded in 1987. The company develops and invests in commercial real estate (and in particular offices for the long term) in Austria, Germany and Eastern Europe. As of 30 June 2010, the company's total property assets amounted to some € 3.6 bn. CA Immo is listed on the Vienna Stock Exchange, with free float of around 90% at the present time.
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Friday, 22. October 2010 14:00