Hotel Opportunity in the New Heart of Helsinki
For illustrative purposes only / GETTY IMAGES / Chris Ryan
For illustrative purposes only / GETTY IMAGES / eric Audras
Architects Vision. Copyright YIT
Architects Vision. Copyright YIT
The Opportunities
3
The Proposed Hotels provide unique and new opportunities in the well located and connected Pasila district of Helsinki. YIT proposes to develop these two hotels in a “new city centre of Helsinki” with the following characteristics:
For illustrative purposes only / GETTY IMAGES / George Doyle
Full Service Hotel
• 260-room full service hotel • Central location with a view towards current city centre • Average room size approx 26m2 • 1,000m2 of flexible meeting and conference space • An all-day restaurant with a lobby bar Limited Service Hotel
• 160-room limited service hotel • Close proximity to demand generators • Average room size approx 22m2 • Facing northbound towards Business Park facility
For illustrative purposes only / GETTY IMAGES / Yuri Arcurs
For illustrative purposes only / GETTY IMAGES / michael blann
All images for illustrative purposes only. All appearances are subject to change.
For illustrative purposes only / GETTY IMAGES / kristian sekulic
For illustrative purposes only / GETTY IMAGES / oktay ortakcioglu
4
The Hotels
For illustrative purposes only / GETTY IMAGES / nikada
5
Facilities
Leisure Facilities
The preliminary plans for the two hotels outline the
facilities as follows:
Full Service Hotel Guest Rooms For illustrative purposes only / GETTY IMAGES / german
• 260 rooms measuring approximately 26m2 distributed across the floors 3-13 on the south side of the building facing towards city centre of Helsinki Food & Beverage Facilities
Current plans include an all-day dining restaurant on the 2nd floor which is estimated to occupy 300m2 with a capacity of 200 customers. The kitchen will also cater for the adjoining conference and meeting facilities. There is a proposed separate lounge bar facility. Meeting Facilities
For illustrative purposes only / GETTY IMAGES / hanquan chEn
The plans incorporate a number of meeting and conference facilities on the 2nd and 3rd floors with a total area of 1,000m2 which could accommodate up to 800 delegates in a range of flexible rooms. Currently the largest room is planned at 450m2 with a flexible partitioning. N W
Limited service hotel
Maintenance area
Full service hotel
E S
The Hotel is anticipated to feature up to 500m2 of spa facility together with some treatment rooms and Scandinavian sauna departments and a well equipped gym. The shopping centre is anticipated to house a branded gym for external membership with a wide range of equipments. This facility is expected to be available for hotel guests.
Limited Service Hotel Guest Rooms
• 160 rooms measuring approximately 22m2 distributed across the floors 6-13 on the north side of the building facing the courtyard and an office tower on the other side of the Tripla development Food & Beverage Facilities
Due to the nature of the operating business model, and the fact that the proposed shopping centre and the surrounding area of Pasila will provide a number of food and beverage establishments, current plans only include a facility for providing breakfast buffet and potentially a small bar serving mainly inhouse guests. The limited service hotel will benefit from having the full service hotel as a neighbour.
6
The Largest Commercial Development in Finland The proposed hotel development site is located in Pasila district of central Helsinki, in a new circa 350,000m2 mixed-use development called Tripla, which is to be constructed over the current rail yard of Pasila station.
Current Planning and Development Status
YIT is seeking experienced hotel operators and investors to drive these two developments on the site. Helsinki city’s planning authority has approved the preliminary plans for these two hotels. Subject to the approval process, and the successful outcome of the operator search, construction could start in 2016, in close co-operation with the hotel operator.
Anticipated Timing
Subject to securing the necessary planning permissions for these developments, delivery of the necessary concepts and the construction process, it is envisaged that these proposed hotels could commence trading from January 2020.
Architects Vision. Copyright YIT
7
N S
• Connecting bridge between hotel and station blocks
• Public transport interchange
The following features will be included in Tripla
• Shopping centre • Residential • HQ‐level offices • Business Park • Hotels • Multifunction area • Public Transport Terminal • Light traffic routes, parks and squares • Plenty of parking and easy access to public transportation
Hotel block Housing block HQ Office block & Business Park Railway station block
8
Tripla’s Division of Space day spa, optional
Maintenance area
Full service hotel
Limited service hotel
business park
gross area, m 2
• Parking + metro station reservation
125,000m2
• Shopping centre and leisure
85,000m2
• Train station and HQ offices
45,000m2
• Residential
34,000m2
• Business Park
25,000m2
• Hotels
26,000m2
Total 350,000m2 Entrance
Hotel reception, restaurant, meeting facilities
Street level
shopping centre
Car Parking + metro provision
S
N
Future Plans for Pasila
9
100 m
Hartwall Arena
Messukeskus Helsinki, Expo and Convention Centre
residential area
Hotels
Architects Vision. Copyright YIT
• Former rail yard area • More than 3,000 residents • Approx. 1,000 jobs • Proposition for a town plan in fall 2015
Centre Block Tripla • A major service and transportation hub • Total constructed area 350,000m2 of which more than 70,000m2 will be retail premises • Proposition for town plan in fall 2014
Tower Area N W
E S
• 150,000-200,000m2 • Business premises and apartments • International competition for the design and implementation of the area begins in fall 2015
10
Location & Accessibility Pasila railway station will be the second busiest station in Scandinavia. It is estimated that almost 150,000 passengers and 900 trains will pass Pasila daily.
in k
au
m e ss uk pu
ng
in
ai
es k
le htik uv a/T
us
Airport
2 3
H el sing
25 min Helsinki Vanta a
1
7
TRIPL A 4
IMO
JA
AK
5
A
st
O
ei
H
n
ON
9
10 11
5Helsinki minCity
6
an op
Centre
kk
i/S ky f
o to
8
Helsinki City Centre 1
2
Hartwall Arena (1,6 km) creative
co m
mo
Hel sin g
ns
/K
ir
in k
n
au
pu
in
ai
n
nd
/J
us
N si
He
ll
W
st
uv
an op
en
st
-h oi
E S
i/
is t
kk
pu
Mat
ola
ti Tirr
in n an m äki ite / l
i
Linnanmäki Amusement Park (1,3 km)
Helsinki Central Park (700 m) visit fin la
ng
ei
u
4
3
Messukeskus Helsinki, Expo and Convention Centre (750 m)
5
Töölö bay (1,6 km)
6
Suvilahti / Flow festival (3 km)
1 Hartwall Arena 2 Messukeskus Helsinki, Expo and Convention Centre
3 Helsinki Central Park 4 Linnanmäki Amusement Park 5 Töölö Bay
6 Suvilahti 7 Pasila station
8 Helsinki railway station
9 S-Bank headquarter 10
OP Pohjola Bank headquarter
11
Nordea Bank headquarter
11
The development, located some 2,5km to the North
from the current city centre, will become one of the best connected locations in town with immediate access to public transportation, good shopping and several large venues for conferencing and entertainment use. Pasila, is already one of the main business districts of Helsinki. It is conveniently located just a short distance away from several strong accommodation demand generators such as: Helsinki Exhibition and Convention Centre “Messukeskus”, sport, concert and entertainment venue Hartwall Arena and Linnanmäki amusement park. Many offices and HQs of Finnish banks are nearby. Pasila and Tripla is expected to become the second city centre of Helsinki and benefit from the high-speed Ring Rail Line connection to the airport (set to be opened 2015) and a local train ring tunnel known as the Helsinki City Rail Loop. The site already benefits from very good access by car and very frequent tram line services. The proposed development site is ideally positioned to take advantage of both corporate and leisure demand for hotel facilities. It will benefit from a prime location in the central commercial district of Helsinki, next to the biggest transport intersection in Finland. A variety of shops, restaurants and other services as a part of a mixed-use development are planned. Finland’s media headquarters, a large number of offices, biggest congress hall and concert arena, as well as many tourist attractions are located within the walking distance. Occupying a prominent and elevated site, the hotels will enjoy perfect visibility from far afield, and will provide panoramic views over Helsinki city centre, making them some of best located hotels in the city.
Architects Vision. Copyright YIT
High speed Ring Rail line to HKI-Vantaa Airport (25 min) Allegro high speed train connection St. Petersburg (3,5 h) Metro connecting East and West Helsinki and Espoo Frequent Tram and Commuter Train services
For illustrative purposes only / vastavalo / Lasse Ansaharju
For illustrative purposes only / vastavalo / juhana konttinen
For illustrative purposes only / vastavalo / Sampo Kiviniemi
For illustrative purposes only / vastavalo / Tuula Roos
12
Local Economy Helsinki, the capital of Finland is a compact yet dynamic city at the geographical and cultural crossroads between East and West.
visit finland
13
visit helsinki / Lauri Rotko
visit helsinki / Sakke Somerma
visit finland / Juho Kuva
Helsingin Juhlaviikot / Helinä Kuusela
The city has repeatedly been found to be among
visit helsinki / Mika Lappalainen
visit finland / juho kuva
the best cities to live in and has a population base of approximately 600,000 (approximately 1,3m in the wider metropolitan area). The city, with its diverse economy, has become a leading business hub at the heart of the Baltic Sea region. The city remains one of Europe’s richest capitals and the metropolitan areas gross value added per capita equals those of Stockholm and Paris. Contributing almost a third of Finland’s GDP, Helsinki profits particularly from the significant presence of service related, IT and public sectors. Shipping companies are also among the large employers. Helsinki is the key tourism destination in Finland, with approximately 3,2 million visitor arrivals in 2013. The city benefits from a healthy business/leisure mix and is supported by excellent infrastructure and connections. Key tourist attractions include world class museums (Atheneum, Kiasma and National Museum), churches, architecture, leisure parks (Linnanmäki, Sealife), Suomenlinna fortress and the surrounding archipelago. The city is a popular destination for international events, conferences and exhibitions thanks to the safe environment and easy access.
visit helsinki / Niclas Sjöblom
visit helsinki / Paul Williams
creative commons / valokarnevaali 2013, yleiskuva / linnanmäki
14
The Hotel Market Helsinki is the key tourist destination in Finland, with approximately 3,2 million visitor overnights recorded in 2013. Helsinki’s hotel market currently consists of approximately 8,400 guest rooms in 61 hotels. The market is dominated by national and Scandinavian hotel chains and is heavily mid-market oriented. Helsinki attracts a healthy mix of business and leisure visitors and benefits from excellent infrastructure and air transport links. Leisure demand peaks during the summer months, meanwhile the rest of the year is supported by stable corporate and MICE demand. The latter, has seen a stable growth over recent years and has set a new record in 2013 when 288 international conferences, that attracted more than 31,000 conference guests took place in Helsinki. Despite experiencing a considerable downturn during the global economic crisis, the Finnish economy, and demand for hotel accommodation in Helsinki, recovered faster than expected by both economists and hotel specialists alike, mainly due to the growth of leisure demand. The recovery in the Helsinki hotel market has also been faster than in many other European capital cities. In 2013, the hotel market in Helsinki achieved occupancy of 68% together with an average daily rate of ₏96, yielding a RevPar around ₏65. Demand has recovered to the pre-crisis level and average room rates are improving, although lagging slightly behind the record levels of 2007 and 2008.
Helsinki in 2013
3,2
million visitor overnights
288
international conferences that attracted more than 31,000 conference guests
15
million passenger volume in Helsinki-Vantaa Airport
10,7
million passengers registered in Helsinki Passenger Ports For illustrative purposes only / GETTY IMAGES / reza estakhrian
Terms & Development
15
yit – developer
Terms
1
YIT is seeking to develop the Hotels to an agreed specification. Christie+Co has been appointed to identify and agree terms with a hotel operator. Our clients will consider both lease and management agreement terms, although preference is given for a lease (either fixed rent, turnover based or a mix). A management contract will be given consideration, particularly with owner’s priority or some forms of performance guarantees. Prospective LESSEES are invited to provide:
• Details of operating experience • Proposed branding & style of operations
2
4
• Lease terms, initial rental levels and rent review mechanism
YIT is a construction industry leader
• Location of the nearest hotel operations
• Details of operating experience • Proposed branding & style of operations • Terms of contract, base fee and incentive fee structures • Guarantees or subordination structure • Technical services fees • Location of the nearest hotel operations
YIT creates better living environments in Finland,
3
Prospective MANAGEMENT partners are invited to provide:
1
5
2
UPM Head Office, 16,800m2
3
Triotto Office Building, 23,000m2
4
Business Park Safiiri, 14,000m2
5
Shopping Centre Willa, 20,800m2
Russia, the Baltic countries, the Czech Republic and Slovakia. Over 100 years of experience have secured for YIT a strong market position: YIT is the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia. YIT has more than 6,000 employees in seven countries.
Further Information on the proposed HotelS is available on request. Initial expressions of interest should be directed to:
Kimmo Virtanen
Director–Christie+Co T +358 9 4137 8501 M +358 40 358 1414 E kimmo.virtanen@christie.com
Technopolis II Ruoholahti Energiakuja 3
Olga Kiilunen
Consultant–Christie+Co T +358 9 4137 8502 M +358 40 723 6969 E olga.kiilunen@christie.com 00180 Helsinki FINLAND
Conditions of Christie+Co Particulars These sales particulars are prepared as a general guide to the property/properties (which expression includes business and trade content, if any, included in the sale) for the convenience of a prospective purchaser or tenant (an “acquirer”) and are intended for business people familiar with commercial transactions. If you are not sure that you fit this description, you should take relevant independent advice before proceeding further. Christie + Co for itself and for the vendors, owners or landlords of the property (together the “Client”) whose agent Christie + Co is, give notice that: These particulars are made without responsibility on the part of Christie + Co or
the Client; they do not obviate the need to make appropriate searches, enquiries and inspections, nor do they constitute any part of an offer or contract, and statements herein are not to be relied upon as statements or representations of fact; any acquirer must satisfy himself, by inspection or otherwise, as to their correctness and any error, omission or mis-description therein shall not affect or annul the sale or be grounds for rescission or compensation; B The Client does not make or give, and neither Christie + Co nor any of its employees has any authority to make or give, any representation or warranty whatever in relation to the property;
A
C
Christie + Co has not carried out a detailed
survey, nor tested the services, appliances and specific fittings; D Dimensions (where given) are approximate and should be verified by an acquirer; and E Any accounts or financial statements or registration information provided to an acquirer are provided on behalf of the Client by Christie + Co, and Christie + Co cannot therefore offer any guarantee of their completeness or accuracy, and accordingly shall not be liable for any loss, damage, cost, expenses or other claims for compensation arising from inaccuracies or omissions therein.
These details were believed to be correct at the date of publication but their accuracy is not guaranteed. Subject to Contract. Copyright Reserved Christie + Co