A family-run 3-star hotel in the centre of Celje is for sale by its owner – the Štorman family. It is a 7-storey building with a basement and all amenities. Constructed in 1965, the building was acquired by the Štorman family in 1999 and since then partial renovation and refurbishment works have been carried out with the aim to modernise the facilities and keep abreast with the taste and wishes of visitors. Since the family owns and operates a chain of restaurants and pizzerias and a confectionary production, it is time to find a new owner for the hotel with access to international capital flows as well as hotel specific market intelligence in order to take business to the next level. All facets of the hospitality industry and food service are flourishing despite the world-wide effects of the economic crisis or possibly due to the bleak prospects in other industries. The regained economic momentum in many EU countries and the US is expected to drive further growth in business and leisure travel activity. Recent macroeconomic data confirm that consumer spending is firming, supported by gains in household wealth, lower household debt burdens, and gradual improvement in labour markets.
This positive trend, although still weak, is driving business investment spending. Slovenia as a whole is relatively unknown as a travel destination for the visitors from Asia and the Middle East. The hospitality property for sale may be offered to visitors arriving to Celje on business or on a tour of Central European cities. Culinary arts are much cherished in the region in general and by the Štorman family in particular. To stay at the Štorman Hotel means also “wining and dining” that becomes an experience. The Štorman family has a passion for food and a love for fresh ingredients, and they create the works of art that fresh ingredients have the potential to become. With its mix of Central European and Mediterranean influences, Slovenia has so much to offer when it comes to cuisine and restaurants. The Štorman hotel and restaurants proudly have been carrying on the family tradition for more than three decades now.
Details of investment opportunity
Since lodging performance has been good recently with occupancy levels at higher-priced hotels at prior peak levels, the real revenue per available room indicator is rather high. This positive trajectory is expected to continue in 2014, driven by strengthening economic growth and solid room rate gains in the context of below-average lodging supply growth. An opportunity to own and operate a hospitality property such as the Štorman Hotel should not be missed. The hotel has 52 keys: 28 single rooms, 20 double rooms and 4 suites. At present, there are 76 beds (90 beds including extra beds). There is the gourmet world with a total of 525 seats offers a large spread of Slovenian and international cuisine, a parking space for 60 vehicles, and a hairdresser’s and a beauty parlour.
Conventional wisdom tells us a well-trained human capital in the hospitality industry is a key component to the success of the organisation. The staff knows well the tools-of-the-trade and professionalism necessary to be a pastry chef, a baker, a chef, a waiter or a sommelier. Staff availability is often a critical point in the hospitality industry but in the case of the urban hotel of the Štorman family – a true real estate investment opportunity.
The property is personally owned by the owner who is scaling down the number of businesses he’s engaged in. The option available is to purchase the hotel upfront. The hotel is strategically located in Celje, the economic, administrative and cultural centre of the Štajerska Region. The city’s population of 38,000 doubles and triples during international trade fairs, sports and cultural events. Centrally situated but still away from the city hustle and bustle, there is a public transport stop; the hotel is not far from the motorway and close to the tourism hotspots in the region.
The new owner may wish to make changes with the aim to create more meeting space, a business centre and an exercise facility. The hotel can quickly generate value if it is merged into an international brand in order to create a superior product for the market. The property is a value-add opportunity with a growth potential and upside opportunity for a smart investor thanks to its position in a small but very dynamic city. It is particularly attractive for investors that continue to aggressively grow their real estate portfolios particularly in the hospitality and tourism sectors.
Advantages of the investment opportunity
The fully operational Štorman Hotel with an established track record has the net floor area of the hotel of approximately 5,200 sq. m. Ideally position for business people arriving in Celje on a visit to business partners and the international trade fairs, the hotel’s pub is a popular meeting place and its three restaurant rooms, the terrace and the conservatory (sunroom) offer a wide choice of ambients for eating-out. The asking price is 4.4 million euros.
Hotel Štorman Celje
Mariborska cesta 3
Phone: +386 41 352 279