Property Description
Luxury 200-room wellness resort and hotel development in Bad Berka, Germany.
The proposed destination resort will feature approximately 200 luxury guestrooms and suites, including junior suites, premium suites and presidential suites. The development is planned to include a large wellness and spa complex, indoor and outdoor pools, sauna facilities, treatment rooms, fitness facilities, multiple restaurants and bars, conference and event facilities, landscaped grounds and extensive guest parking.
The project is designed as a high-end destination wellness resort serving leisure, wellness, spa, business, conference and longer-stay guests. The planned development investment is approximately €145 million, equivalent to approximately $166.5 million using an indicative EUR/USD rate of about 1.148.
At stabilized operations, the project is modelled to generate approximately $4.64 million in annual operating cash flow/EBITDA, equivalent to approximately 2.8% of the development investment, before financing costs, taxes, depreciation and major capital expenditure. Over a 10-year holding period, the illustrative cumulative operating return is approximately $46.4 million, excluding any increase in property value or sale proceeds.
Bad Berka is a recognized spa destination, while nearby wellness properties demonstrate an existing market for spa, resort and health-oriented tourism.