The sale of the L’Ermitage and L’Embitu, two hotels located in the heart of Tallinn, and their joining of the Accor global hotel chain sends foreign investors a fresh and positive message about the Estonian business environment, emphasised Mr Mihkel Pärtel, Managing Partner at 1Partner Advisory and the consultant of the transaction.
‘A hotel transaction of such scale stands out not only in Estonia but also the entire Baltic region. Although the commercial real estate market has remained relatively still during the last six months, the old saying that quality goods always find a buyer still stands,’ commented the 1Partner Advisory Managing Partner.
‘Accori’s strong position in Estonia adds a healthy dose of competition to the market and increases the foreign investors’ interest in the whole region. The hospitality industry and the entire tourism sector have persevered through several consecutive crises and continue to attract investors,’ Mihkel Pärtel found.
As a result of the transaction, the buildings of the L’Ermitage and L’Embitu hotels will belong to the entrepreneurs related to the Estonian construction company Hausers, but as of 1 June, they join the portfolio of the Accor global hotel chain expanding the group’s network in Estonia and this region. The L’Ermitage and L’Embitu hotels will be operated by an Estonian company Duco Hotels and its internationally experienced industry professionals. Duco Hotels also continues to operate the 190-room Ibis Tallinn Center hotel which opened for business in 2019. It was built and is being run by the same entrepreneurs.
‘L’Embitu is a real gem on the Estonian hotel scene, and you can truly feel that heart and soul have been put into it. L’Ermitage has found its place but we wish to change its concept in the future a little in order to make it slightly more interesting and prominent. Both hotels will have a lot of potential under the guiding hands of Duco Hotels and notwithstanding the uncertainties prevailing the real estate market we are not worried about making the purchase,’ said one of the new owners Mr Madis Mägi.
The L’Embitu hotel is a 125-room and four-star hotel built in Lembitu street in 2020. The L’Ermitage hotel is located in Toompuiestee avenue and has been open for business since 2004. It is also a four-star hotel of 122 rooms. In 2014, it underwent renovations.
1Partner Advisory is a member of the 1Partner Real Estate Group, a company that offers commercial real estate and
investment consultation services in the Baltics. Among other services, the company
provides transaction consultations, manages and assesses properties, gives strategic advice and can represent owners or
tenants.
The 1Partner Real Estate Group is the official partner of the world’s largest commercial real estate advisor JLL (Jones Lang LaSalle) within the Baltic region. We have branches in Tallinn, Tartu, Riga and Vilnius. The 1Partner Group provides real estate brokerage, appraisal, construction, development, management and investment management services.
Additional information:
Mihkel Pärtel
1Partner Advisory Managing Director