German lender Deutsche Hypo is financing the acquisition and development of a Motel One hotel in the Europaviertel district of Frankfurt, Germany.

Local developer GBI-Entwicklung bought the 8,000 m2 site in the city centre in April from listed company Vivico, and plans to develop a budget Motel One hotel, a Citadines Apart'hotel, a building with 138 student apartments as well as a daycare centre for children on the area.

The company has filed for planning permission for a 24,500 m2 scheme, and plans to invest a total of EUR 65 mln on the project.

'With this operation, we underline our commitment to continue financing good and interesting development projects,' said board member Andreas Pohl.

Comprising 401 rooms, the Motel One hotel is set to become the largest budget hotel in Frankfurt. The Citadines Apart’hotel, a brand of Singapore-based Ascott, will provide an additional 165 studios and apartments, while the student housing facilities will be realised in partnership with Moses Mendelssohn Stiftung.