CS fund wants to sell Swissôtel in Oerlikon
According to a report in the "Tages-Anzeiger", CS REF Hospitality wants to part with the Swissôtel in Zurich-Oerlikon. CBRE is said to have been commissioned with the sales process.
Like the Tages-Anzeiger first reported, CS REF Hospitality intends to dispose of the Swissôtel as part of its strategic repositioning. At 85 meters, the building at the Oerlikon train station is one of the tallest hotel buildings in Switzerland, and with 347 rooms, the four-star property is also one of the ten largest hotels in the country. There are 450 parking spaces in the basement of the high-rise building.
The real estate fund acquired the hotel in summer 2012, together with the Swissôtel Le Plaza in Basel. Credit Suisse did not disclose the purchase price at the time. As the Tages-Anzeiger citing the fund's annual report, writes that the fair value of the property, as determined by EY, has fallen from CHF 127 million to CHF 110 million since the purchase. The hotel's tenant, Hotel International Oerlikon AG, pays CS REF Hospitality about CHF 5.5 million in rent, the Tages-Anzeiger more. As shown in the 2016 annual report, this represents 10.46 percent of the fund's total rental income.
CS REF Hospitality has previously sold a number of hotels. In the previous year, the Palace in Lucerne changed hands, with Chinese investor Yunfeng Gao acquiring the building. The money from the sale of hotel properties is to be increasingly invested in other types of use, such as healthcare properties and convention centers, CS had announced at the time.
