A new report by Christie + Co. and STR Global indicates that Stuttgart may well become a hotel investment hotspot, fuelled by the ongoing Stuttgart 21 railway and urban development project.
Last year, the city' hotel occupancy rate increased by 8.5 percent from 2013, and up by 46 percent from 2005 to 2014. The city also saw a year-on-year increase of about 12 percent in RevPAR and a 70 percent occupancy rate—approximately a 7.5 percent gain from 2013.
“These stats are encouraging developers and investors to hunt for sites in the region," Lorina Callenberg, consultant investment & letting at Christie + Co in Munich, told Property Magazine International, crediting the Stuttgart 21 project for attracting interest. The initiative is expected to turn the city’s historic station into a high-tech hub that will offer rail links from Paris to Budapest.
Stuttgart’s hilly setting has made it difficult for developers to find suitable construction space, the story notes, so most new project developments are taking place on the city’s outskirts. Other developments are under way in the new Europaviertel (European Quarter), close to Stuttgart’s central station. The Cloud No. 7 project will be an 18-story skyscraper with both private residences and a Steigenberger five-star hotel. The hotel is expected to open next summer.
Several mid-budget hotels are scheduled to open within the next two years. Projects in the pipeline include a Holiday Inn Express, a Hampton by Hilton, a Nordic Pure hotel and a Moxy Hotel. Due to the rising levels of air travel and overflow demand being pushed outward from city-center hotels, Christie + Co expects developers will continue to target the area around the Stuttgart airport.