Europe: Tech-enabled serviced apartment operator limehome has signed four hotel conversion projects in Italy, Spain and Germany, which will add around 200 units over the next year.
Two adjacent three-star hotels in Bari, Italy, will be renovated with limehome and its partners. Both hotels are located on Via Piccinni and Via Roberto da Bari and are set to open by mid-2026.
In Spain, limehome is redeveloping the former Hotel Centro Mar, located on Benidorm’s Calle Mayor, which will reopen in October 2025. limehome is also converting the former Ibis hotel in Jena, Germany, which will be available in summer 2025.
limehome’s growing number of hotel conversions and takeovers is part of its strategy to address challenges such as rising rents and labour costs.
Josef Vollmayr, co-founder and co-CEO of limehome, said: “A significant portion of the estimated seven to eight million hotel rooms in Europe is outdated. At the same time, operating costs have increased by approximately 40 per cent. As rental agreements expire – which will be the case for many properties in the coming years – the pressure on tenants is enormous. In this scenario, improving efficiency and modernising existing properties is crucial to ensure the economic viability of these assets.”
Vollmayr explained that renovating existing buildings rather than building new properties is a faster and more resource-efficient solution for most hospitality companies. limehome’s operating model allows for flexible floor plans and high space efficiency, while their team of architects, engineers and data scientists claim to increase the net lettable area to around 70 per cent, compared to the average 50 per cent for conventional hotel concepts.
He added: “Our tech-enabled concept combined with deep conversion expertise provides a needed solution for underperforming hotel assets. Hotel conversions already represent up to 15 percent of our portfolio and the trend is rising. Due to the increasing cost pressure faced by operators from the mid- to upscale segment, we expect a significant rise in conversion projects within our portfolio over the next few years. The same applies for hotel takeovers.”
Highlights:
• limehome has signed four hotel conversion projects in Italy, Spain and Germany, which will add around 200 units by 2026.
• Projects include two adjacent hotels in Bari, Italy; the former Hotel Centro Mar in Benidorm, Spain; and the former Ibis hotel in Jena, Germany.
• The conversions align with limehome’s strategy to modernise outdated hotels and address rising rent and labour costs in the hospitality sector.
• Hotel conversions now make up 15 per cent of limehome’s portfolio.
