The Rezidor Hotel Group announces the successful negotiation of a ten-year extension of the lease with Invesco Real Estate Fund.
The deal will allow the iconic Radisson Blu hotel brand to remain a tenant for the next twenty years at Messe-Kreisel 3, Invesco’s landmark property in Cologne. As per the lease, the 393-room hotel will benefit from a €7million renovation program, bringing the best of the Radisson Blu interior design scheme to town.
Rezidor’s Senior Vice President of Asset Management, Philippe Dejonghe explained: “The contract is a win for our business, for the landlord and for the city of Cologne. Invesco has a long term commitment with Rezidor, and we have strengthened that relationship further by showing our commitment to Cologne as a city, and as a showcase of our global upper-upscale brand, Radisson Blu. Radisson Blu Hotel, Cologne is a landmark on its own, and has won several awards and accolades since its opening in 2003. Our renewed agreement with Invesco allows us to renovate and to reposition the property to continue offering the best of Radisson Blu’s hospitality in Cologne.”
The Radisson Blu, Cologne is located close to the city center, walking distance to the trade fair (Koelnmesse), congress facilities (Kölnkongress) and Lanxess arena and 15 minutes’ drive to the airport. The hotel has 393 rooms, two restaurants, one bar, 11 meeting rooms (950m2), gym/sauna and 164 underground parking spaces.
The news of the Cologne contract restructuring comes at an opportune time, as Radisson Blu recently re-opened its newly renovated landmark hotel in the heart of Lyon, earlier this month. This 40-storey tower, locally known as “Le Crayon” is the tallest building in Lyon (and second largest urban area in France).
The hotel reopens after a 3-year long complete refurbishment, which is the result of a co-investment of €40million between the hotel owner Hibernia France and The Rezidor Hotel Group, to create a world class hospitality experience in the culinary capital of France.
Philippe Dejonghe commented on the company’s approach to investment: “These renegotiations and related renovations form part of Rezidor’s wider asset management strategy. Although leases may be viewed as a liability on account, our management remains committed to investing in our core markets and trophy assets across Europe. When leased hotel properties are due for renewal, we take a view on what is best for the business, using our experience and expertise to fairly assess risk levels against opportunity and potential for profitability.”