Julius Meinl Living Acquires Property in Budapest

Julius Meinl Living PLC is fully controlled by the Julius Meinl family who, over the last 163 years, have demonstrated their expertise and excellence in consumer goods, retail and real estate.

The first The Julius property opened in Prague in 2022, as The Julius Prague. The property has been a stunning success with guests. Its rating on Booking.com is 9.6 after 5,997 reviews over the last three years and recently the property was awarded a coveted Michelin Key.

In 2024, its second full year of operation, The Julius Prague achieved revenues of €12.2 million and EBITDA of €6.4 million, with a margin of 52%. The Julius Bucharest will be the second property of the brand and is expected to open around the end of 2027.

Budapest Acquisition

Julius Meinl Living is pleased to announce that it has recently completed the acquisition of a property on Hegedu utca in Budapest. Following extensive construction, “The Julius Budapest” is planned to open its doors on the site in early 2029.

By virtue of its ownership and operation of the Escala Hotel & Suites in Budapest, Julius Meinl Living knows that Budapest is a highly attractive market: In 2024, there were 17.5 million travellers through the city’s airport. This represented growth of 19.0% as compared to 2023 and compares to 16.4 million in Prague. Likewise, in 2024, demand for accommodation grew by 19.5% as compared to 2023, to a total of 9.8 million nights. Within central and Eastern Europe, Budapest boasts the highest share of luxury rooms, reflecting the profile of the visitors to the city.

Hegedu utca is in a prestigious district of central Budapest. It is close to the luxury boutiques of the Andrassy ut through-fare and to the State Opera House. Like The Julius Prague, it is approximately a mile from the city’s famous riverfront.

The property that has been acquired by Julius Meinl Living comprises a plot of 1,991m2. Around 74% of the plot has been cleared and is ready for development. The remaining 26% comprises an existing building that covers an area of 512m2 and that fronts the street.

Julius Meinl Living will retain and redevelop the existing building and will construct new buildings on the other three sides of the plot. Once construction is complete, Julius Meinl Living expects the property to have a gross area of 9,910m2 with 118 rooms and apartments that have an average size of 34m2.

Given the location and project characteristics of The Julius Budapest, the property, once complete, will have many similarities to The Julius Prague.

The property that has been acquired benefits from a valid permit for the construction of a hotel with more smaller rooms than The Julius Prague will have. Julius Meinl Living will apply for this permit to be modified and is hopeful that it will be possible to begin works within a year from now. The works are expected to last a little over two years and to enable opening in early 2029.

Funding for the acquisition of this property and for its redevelopment is expected to come from the Julius Meinl Living group and from senior bank debt. Julius Meinl Living is in discussions for the senior bank debt to fund the development cost.

As with The Julius Prague, it is intended that The Julius Budapest will be certified to LEED Gold standard (or higher).

Strategy

With The Julius concept now proven, Julius Meinl Living is continuing the process of developing its portfolio of “The Julius” branded “luxury product / low operating cost” hotels that comprise mainly apartments and that are located in the major political and economic capital cities of Europe.

Over and above the acquisition of the property in Budapest, Julius Meinl Living is progressing negotiations in relation to a number of identified and exciting pipeline properties and continues to seek additional pipeline opportunities, in all cases for eventual addition to The Julius portfolio.

Financing

With the benefit of its EMTN bond programme and The Julius Fund, the qualified investor fund in the Czech Republic that supports Julius Meinl Living, the group has been able since 31st December 2024 to raise a total of €16 million of new capital. This capital programme supports both the acquisition of the property on Hegedu utca and future acquisitions by Julius Meinl Living.