PATRIZIA, a global investment manager for real assets, has successfully signed a new long-term lease agreement for the existing property at Nagahama Allee 77 in Augsburg. COTP, an established white-label hotel operator in the German market, has been won as a new tenant.
The five-storey hotel building on the eastern edge of Augsburg's old town has 136 rooms and a gross floor area of around 5,200 square metres. The hotel property is operated under the "Holiday Inn Express" brand. The new lease agreement secures a long-term usage perspective for the location and contributes to the sustainable development of the property's value.
A central component is an extensive renovation of the guest rooms and public areas, which is scheduled to start in winter 2026 during ongoing operations. The work is planned over a period of around six months, so that the hotel will present itself in spring 2027 in a completely modernized appearance. The aim is to significantly increase the quality of stay and to make the house fit for the future in the long term.
"The successful new lease underlines both the high quality of the location and our active asset management approach, from which our investors benefit in the long term. We are convinced that COTP is the right partner for a long-term and stable lease relationship," says Thomas Otto, Head of Investment Management Operated Properties at PATRIZIA.
"The takeover of the existing hotel business in Augsburg is a further step for us to strategically expand our cooperation with international brands and at the same time consistently develop our operating model," says Erik Florvaag, CEO and Managing Partner of The Chocolate on the Pillow Group. "We are pleased to further intensify our partnership with PATRIZIA, which has existed in a spirit of trust for years."
PATRIZIA manages assets of around EUR 1.6 billion in the hotels sector and has proven expertise and a long-standing track record in the management of operator properties. On this basis, PATRIZIA provides institutional investors with access to special properties such as hotels, which require a high degree of specific know-how and at the same time have an attractive risk-return profile.
PATRIZIA was advised by Hogan Lovells and HOTOUR, while COTP was advised by GSK Stockmann.
