Golden Tulip: 500 hotels in 46 countries
Eurotrade Real Estate buys German hotel for 4.2m euro
Israeli company signs deal for strategic cooperation with Golden Tulip Hospitality Group
The Eurotrade International Real Estate Company has signed a 4.2 million euro deal with the Golden Tulip Hospitality Group, giving the hotel chain a 15-years lease on a resort in the East German town of Bad Reichenhall, outside Saltsburg.
The Eurotrade International Real Estate Company is owned by the Eurotrade investment and finance firm. The Golden Tulip Hospitality Group holds more than 500 hotel resorts in 46 countries.
The deal includes real estate development, strategic planning and further acquisition of land for the purpose of building and developing more Golden Tulip hotels in Europe and the United States.
According to the agreement, any asset acquired by Eurotrade for the purpose of resort development would be leased to the Golden Tulip Hospitality Group for a period of 15 years. All leases would carry a clause allowing the group to lease any of the resorts for an additional ten years.
The business model agreed on is that Golden Tulip would pay Eurotrade rent fees compiled of a minimal leasing fee for the premises plus an additional fee based on the chain's annual profits and/or its return of the investment – which ever proves higher.
"This agreement coincides with Eurotrade's wish to expand geographically," said Boaz Kemer, chief executive officer of Euro-Trade Real Estate Company.
"We intend to work with Golden Tulip on acquiring 25 additional hotels resorts in Europe and the US, over the next three years," he added.
