Hotel Announcements
Pipeline23 June 2017

Hoog Catharijne Mall Hotels

Borealis Hotel Group and First Sponsor Group to develop 6 floors of Netherlands mall into two hotels

Scheduled for 2018 – 310 Rooms

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Singapore's First Sponsor Group has agreed to acquire the third-through-ninth floors of the Poortgebouw Hoog Catharijne in Utrecht, the Netherlands, with Hoog Catharijne Mall of the Netherlands for about $29.43 million. As part of the conditional sale and purchase agreement, First Sponsor will develop the approximately 124,900 square-foot leasable space into two hotels, The Business Times reported. One will be under the Hampton by Hilton brand (or a hotel brand of similar standing) while the other one will be under the Crowne Plaza brand or a brand of similar standing.

First Sponsor will contribute up to approximately $13.40 million to develop the property while hotel operator Borealis Hotel Group will provide up to another $2.23 million at an interest rate of 7 percent per year if more development funds are needed.

Once the development is completed, the two hotels will have about 192 guestrooms and 128 guestrooms, respectively. First Sponsor has planned to finance the purchase price through the drawdown of its existing unsecured credit facilities. "The directors believe that this acquisition and the rental income from the leasing arrangement under the lease agreement are beneficial to the group and will help to expand its recurring income base in the Netherlands," the group told The Business Times.

Dutch-based hotel developer, investor and management group Borealis Hotel Group focuses on the hospitality and leisure market in major capital cities. The company currently develops projects of Hilton, IHG, Accor and Marriott in Amsterdam, Antwerp, Brussels, The Hague, Paris and Utrecht.

The vendor Hoog Catharijne Mall of the Netherlands is a wholly-owned unit of Klépierre. The company is listed on the Euronext Paris, and it maintains a substantial presence in continental Europe's retail property market with shopping centers in 57 cities and 16 countries.

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Brand

Hilton

Founded in 1919 as the flagship brand of Hilton Worldwide, Hilton Hotels & Resorts continues to build upon its legacy of innovation by developing products and services to meet the needs of savvy global travelers at more than 550 hotels across six continents.
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Management Company

The Borealis Group

The Borealis Group was founded 20 years ago 1997 by Mr. Bart van de Kamp as a Dutch-based investment, development and management company, focusing on the hospitality and leisure market in major capital cities and airport locations across Europe.
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Brand Owner

The Borealis Group

The Borealis Group was founded 20 years ago 1997 by Mr. Bart van de Kamp as a Dutch-based investment, development and management company, focusing on the hospitality and leisure market in major capital cities and airport locations across Europe.
more information
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