No prospect of market improvement: Renowned luxury hotel Hessischer Hof in Frankfurt am Main closes at year-end
Frankfurt, Germany - 23 September 2020 - It is not really surprising: The Grandhotel Hessischer Hof in Frankfurt/Main will close for good at the end of the year. The owner, Donatus Prinz von Hessen, sees himself forced to make a "portfolio adjustment" due to the losses in the Corona crisis and "the continued expected sharp drop in sales in the business and trade fair hotel sector at the Frankfurt trade fair location". On the other hand, it intends to continue to invest in the Taunus-Hideaway Schlosshotel Kronberg and its wineries.
"The decision is painful, but it serves to protect the entire corporate group. All forecasts clearly indicate that the conference, trade fair and business travel segments will only recover in the very long term and that further high losses must be expected in the next two years. We expect sustainable changes in the business model of the business hotel industry in the future," Donatus Landgrave of Hesse continues.
The Prince of Hesse group of companies wants to fully meet all its liabilities from existing contracts with affected employees until their last working day, was announced. A total of 63 employees out of 350 employees in the entire group were affected. This corresponds to a share of less than 20 percent of the entire workforce and just under 30 percent of the hotels.
The aging Grandhotel Hessischer Hof has been suffering for some time now from the massive market pressure of new hotel concepts in the witch's cauldron of Frankfurt's city hotel industry. Modernization was only possible to a limited extent and expansion was not even possible. Meanwhile, the question arises as to what could happen in the future to the former premium property in a good location near the trade fair; the site should be interesting for project developers.
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