Aroundtown pushes ahead with the conversion of office properties in European cities – "Serviced apartments are an important building block"

Aroundtown, one of Europe's largest real estate companies, is consistently developing its mixed-use strategy in central locations. A special focus is on serviced apartments as a supplementary use in existing properties. They expand classic office locations with new usage rhythms, increase the economic resilience of real estate, contribute to the revitalization of urban districts even outside of classic office hours and create attractive long-term earnings prospects, far beyond the regular rental terms of office rents. The integration of serviced apartments is therefore not only a response to changing market requirements, but also a strategic building block for the sustainable value development of existing properties.

The Coolse Poort property in Rotterdam shows how successfully mixed-use concepts can be implemented. The former office building in a central location was recently extensively modernised and transformed into a mixed-use property. Serviced apartments, conference spaces and additional services such as a large fitness studio make the sustainable property a lively part of the city centre today, tailored to the needs of the neighbourhood.

"Offices remain a central component of urban spaces – at the same time, the requirements for buildings are changing across markets. With mixed-use concepts, we are developing existing properties in a targeted manner and supplementing them with uses such as hospitality, gastronomy or fitness," says Barak Bar-Hen, CEO of Aroundtown. "Serviced apartments are an important building block in this, especially in inner-city locations, because they enable flexible stay formats. They combine high demand with attractive long-term earnings prospects, often more attractive than regular office rents, and complement existing office locations with a use that contributes to the revitalization and sustainable value development of urban districts."

In 2025, the company successfully completed the conversion of an office building in Rüsselsheim near Frankfurt into a hotel property, which was subsequently leased to B&B Hotels. Aroundtown is pursuing this approach in several European cities, including London. In Kensington, former residential properties that were formerly used for hospitality have been extensively renovated and modernised and converted into serviced apartments. 70 apartments are being built over two properties that meet the strong local demand.

Aroundtown is also planning further developments of existing properties into mixed-use concepts with serviced apartments in several major German cities. Currently planned conversions to serviced apartments, either as a complete conversion or as a mixed-use concept, are planned in the following properties:

• Dortmund (Königswall 1): On Königswall, directly at the main train station, 51 serviced apartments are under renovation and will be completed in summer 2026 according to plan.
• Athens (11 Themistokleous): In a central downtown location of Athens, a former office building is being converted into 43 serviced apartments. Completion is scheduled for the second half of 2026.
• Berlin (Karl-Liebknecht-Straße 33): In an extremely central location on Alexanderplatz, 285 serviced apartments are being built. The building permit has been granted, the former office property is being renovated and is scheduled for completion at the end of 2026.
• Dortmund (Hansastraße 95): The mixed-use transformation with 134 serviced apartments is also being implemented and is expected to be completed by the end of 2026.
• Berlin (Marburger Straße 12–13): Here, 84 serviced apartments are being developed near the Ku'damm. The building permit has been granted, the former office property is being renovated and is scheduled for completion in 2027.
• Frankfurt am Main (Stuttgarter Straße 18): The office property in the immediate vicinity of the main train station will be converted into a serviced apartment project with 188 units. The building permit has been submitted and the gutting work has begun. The complete conversion process will continue this year and completion is scheduled for 2027.
• Hanover (Karl-Wiechert-Allee 18–22): In Hanover, 83 serviced apartments are being renovated, which will be completed in 2027.
• Berlin (Köpenicker Straße 30): 161 serviced apartments are being built in Köpenicker Straße. The office property is under renovation and completion is scheduled for 2027.
• Frankfurt am Main (Bleichstraße 64): An office building is being partially converted into a serviced apartment concept with 86 units. The building permit has been submitted, and completion is scheduled for 2028.

Further projects in Munich, Stuttgart and Essen are being planned. The further development of the existing building combines new usage concepts with modernisation. The aim is to make real estate competitive in the long term and to strengthen urban locations through a balanced mix of uses.