Mercure Zurich City

The property owned by Credit Suisse in Zurich-Altstetten at Vulkanstrasse 110 has been converted into a new development. Steiner AG has signed a project development agreement with Credit Suisse for the joint development and realization of a mixed-use development (residential/commercial/services) with around 58,000 m² of floor space on the approximately 12,000 m² site.

The original plan was for the development to be used as offices on the five basement floors. The building was designed accordingly by the architect Dominique Perrault. Given the difficult conditions on the Zurich market for office space, alternative uses for the basement floors were to be examined.

red KG was commissioned by Steiner AG to carry out a feasibility study for hotel use. This study was able to demonstrate that a hotel in combination with serviced apartments is an economical alternative to offices; this despite the fact that the already planned building structure on the basement floors has a negative impact on the space efficiency of a hotel. As a result, red KG was also commissioned to acquire the operator.

There was great interest in operating a hotel in this building, so red KG was able to present its clients with a large number of viable offers. Most of the offers included a hotel combined with serviced apartments, with the hotel having around twice as many rooms as the serviced apartments.

a-ja's concept was able to prevail over the competition, ahead of Steiner AG and Credit Suisse. a-ja was one of the few concepts that occupied the entire basement floors with a hotel. In addition to the economic aspects, the overall concept of the a-ja CityResort was crucial for the decision-making body. In addition to the 319 hotel rooms, spacious catering areas, a fitness and spa area in collaboration with Nivea and an associated Nivea shop were also created. These services liven up the neighborhood and are also accessible to the apartment tenants. The rental agreement was concluded on May 23, 2016.

Shortly after the opening, the Corona crisis hit the hotel, which was not yet established on the market, hard. This has caused significant economic damage to the operating company. red KG AG was brought in to analyse the situation and coach the operator. As a result, the operator offered to withdraw from the lease if a worthy successor was found. red KG AG was commissioned by Credit Suisse to find a new operator. The operator search process was extremely successful, and the hotel attracted great interest on the market. In September 2023, a lease agreement was signed with The Chocolate on the Pillow Group and Accor for the continuation of operations under the Mercure brand. The hotel will go on the market on November 1, 2023 as Mercure Zurich City.