Vienna International Hotelmanagement AG has acquired the Arcadia Hotel Trier in Germany. The Austrian hotel operator now runs 13 hotels in Germany. The Arcadia Hotel Trier has 105 guestrooms and is located right next to the well-known Imperial Baths.
The Arcadia Hotel Trier, which was taken over on July 31, is the the 10th hotel of the Arcadia Group to be managed by VI. Dr. Andreas Karsten, CEO of VI Hotels, sees great potential in the group's latest addition and in Trier as a travel destination. "In Trier we find all prerequisites for a successful hotel. The highly professional team and the infrastructure facilities will contribute to the ongoing success of the establishment, as will the city's numerous sights, educational institutions, the internationally renowned Academy of European Law and the strong local industry," said Dr. Karsten.
The Arcadia Hotel Trier was purchased by VI's German subsidiary, VI Asset GmbH. The hotel will be integrated without any interruption in service. Both parties agreed to keep the purchase price confidential.
With the acquisition of the Arcadia Hotel Trier, VI continues to pursue its value-driven growth strategy and to meet the economic interests of its shareholders and prepares for the planned IPO. After purchasing a total of EUR 50 million in real estate assets (based on fair market value) in 2013, the group has continued its resounding success in 2014 with four more real estate acquisitions. Shareholders allowed VI to retain a large portion of last year's profit, which had increased by more than 22%. The agreed capital increase, as announced by VI in early summer, was successfully completed. "Vienna International boasts an excellent strategic position and robust earnings," Dr. Karsten goes on to say. "We are also very pleased that our equity ratio, as defined by IFRS, ranges close to 30%, despite intense acquisitions on a scale typical of real estate transactions. This goes to show that we have cut good deals, that we manage hotels superbly, secure appropriate funding and pay back debt quickly on the back of a strong cash flow."