smzh blue logo

From old-town hotel to leasable, income-generating asset.

In the old town of Bremgarten, a heritage-protected former hotel is being fully renovated and turned into 16 furnished rental apartments above two restaurants. smzh manages the central interfaces of feasibility, permitting, implementation and lease.

Bremgarten AG, hotel conversion: From old-town hotel to leasable, income-generating asset.

Starting point

1 heritage-protected old-town building

An old-town building in a central location, with historic substance, commercial use on the ground floor and potential for residential use (furnished apartments) above.

Challenge

Heritage protection, existing substance, two restaurants and furnished apartments had to fit together structurally, operationally and economically.

Planned result

16 rental apartments

16 furnished rental apartments above two restaurants – fully renovated in keeping with heritage requirements and geared toward successful leasing.

The biggest value levers at Bremgarten:

Blue marks a value jump.

01 Property access

    02 Feasibility

      03 Usage concept

        04 Structure

          05 Permitting

            06 Capital

              07 Implementation

                08 Lease

                  09 Exit

                    Project profile:

                    Location

                    Bremgarten AG, old town

                    Starting point

                    Heritage-protected old-town property (former hotel)

                    Use

                    Residential and gastronomy

                    Apartments

                    16 rental apartments (furnished)

                    Gastronomy

                    2 restaurants

                    Intervention

                    Heritage-compliant full renovation

                    Fit-out

                    Furnished rental apartments, rooftop terrace

                    Status

                    In execution, completion 2026

                    A heritage-protected former old-town hotel becomes an income-generating asset featuring 16 furnished rental apartments and two restaurants.

                    Rooftop terrace overlooking the old part of town.
                    New bathroom with level-access shower.

                    Heritage protection sets limits. That was precisely the challenge.

                    The heritage-protected old-town building, a former hotel, features commercial use on the ground floor and hotel use on the upper floors. Heritage requirements limited straightforward interventions. The challenge was to preserve the historic substance and yet reorder residential and gastronomy use so that the existing property became a leasable, income-generating asset.

                    Historic roof truss remains visible in the living space.
                    Historic roof truss remains visible in the living space.
                    Exposed beams and internal access in the existing building.
                    Exposed beams and internal access in the existing building.
                    Living room with exposed historical beams.
                    Living room with exposed historical beams.
                    Furnished rental apartments incl. open-space kitchen.
                    Furnished rental apartments incl. open-space kitchen.
                    Bedroom and living room of a furnished rental apartment.
                    Bedroom and living room of a furnished rental apartment.

                    A former hotel becomes a leasable, income-generating asset.

                    Feasibility clarified

                    Heritage protection, existing use, intervention, costs and yield had to align economically. Only based on this did a viable conversion project emerge.

                    Permit obtained

                    The full renovation had to be permitted in keeping with heritage requirements – including preserved substance, renewed building services and a marketable fit-out standard.

                    Leasing prepared

                    16 furnished rental apartments and two restaurants have to hold up in the market after conversion. Only successful leasing makes the yield resilient.

                    This is how a former hotel becomes a viable income-generating asset.

                    Value jump

                    01 Property access

                    The first question is not maximum change, but which use this heritage-protected old-town building can economically have.

                    • Starting point: A heritage-protected former old-town hotel, with commercial use on the ground floor and hotel use on the upper floors, below market potential.
                    • smzh decision: First clarify which use the location, substance and heritage protection economically allow.
                    • Value lever: Location, substance and yield potential of the property assessed and set as the basis for the project.
                    • Result: A clear target: a viable property featuring furnished rental apartments and restaurants.
                    Value jump

                    02 Feasibility

                    Feasibility shows whether the existing property can become a resilient project.

                    • Starting point: Heritage protection, existing structural engineering, the existing hotel and commercial structure and a demanding use mix set tight parameters.
                    • smzh decision: Assess early whether requirements, conversion, costs, use and yield align.
                    • Value lever: Heritage requirements, structural engineering, access, costs, use and yield brought together into a feasibility basis.
                    • Result: A viable target: heritage-compliant full renovation of the property into an income-generating asset.
                    Value jump

                    03 Usage concept

                    The use mix has to work in practice, not just on paper.

                    • Starting point: Hotel and commercial use below market potential, with potential for furnished rental apartments in a prime old-town location.
                    • smzh decision: Furnished rental apartments above two restaurants in one property.
                    • Value lever: Use mix of furnished rental apartments and gastronomy assessed for leasability, operation and yield.
                    • Result: 16 furnished rental apartments above two restaurants as a marketable target.

                    04 Structure

                    The property has to work as a single economic unit, not as separate units.

                    • Starting point: A heritage-protected old-town building with several uses, requirements and economic interdependencies.
                    • smzh decision: Align operation, financing, conversion and later leasing with one shared target.
                    • Value lever: Operating logic, financing and conversion planning aligned to become one shared yield logic.
                    • Result: Structure aligned with full renovation, furnished operation and leasing; project in execution.
                    Value jump

                    05 Permitting

                    With heritage-protected substance, permittability is the critical path.

                    • Starting point: Heritage-protected substance, change of use and interventions in the historic fabric.
                    • smzh decision: Clarify permittability before implementation, financing and leasing.
                    • Value lever: Coordinated heritage conservation, authorities and planning, Obtained the building permit for the conversion.
                    • Result: Building permit obtained; the conversion is being carried out in keeping with heritage requirements and along the target.

                    06 Capital

                    Capital follows resilient foundations, not historic substance alone.

                    • Starting point: Heritage-protected substance with several uses: financing needs transparent costs, yields and risks.
                    • smzh decision: Make the project financeable through conversion costs, operation and yield.
                    • Value lever: Renovation costs, yield expectations from residential and gastronomy use, and risks translated into a financeable structure.
                    • Result: Financing secured along the target; conversion in execution.

                    07 Implementation

                    Historic substance stays visible, building services and fit-out become marketable.

                    • Starting point: Full renovation of a heritage-protected property with high demands on substance, building services and operation.
                    • smzh decision: Full renovation led along the target: preserved substance, renewed building services, furnished fit-out and two restaurants.
                    • Value lever: Historic substance preserved, beams left visible, building services renewed and apartments fitted out as furnished units.
                    • Result: In execution.
                    Target stage

                    08 Lease

                    The benchmark is not the conversion, but a stabilized yield after completion.

                    • Starting point: Leasing and furnished operation are being oriented toward completion.
                    • smzh decision: Make the stabilized yield after the conversion the benchmark, not the conversion itself.
                    • Value lever: Rent logic, target tenants, apartment standard and gastronomy use oriented toward yield after completion.
                    • Result: Leasing and yield will become visible after completion.
                    Target stage

                    09 Exit

                    The exit is a capital decision after stabilization, not a last-minute fallback.

                    • Starting point: After completion and leasing, the question is whether holding, a partial sale or a sale makes the most sense.
                    • smzh decision: Focus holding, partial sale or sale on risk-adjusted value and portfolio logic.
                    • Value lever: Full renovation, use, furnished operation and lease managed so that several capital options remain open after stabilization.
                    • Result: Capital options are deliberately kept open until completion and stabilization.

                    Which decision is coming up for your property project?

                    Whether existing property, development, financing, leasing or sale: we assess your starting position and show which next steps matter for structure, capital, implementation or exit.

                    Assess project

                      Create investor profile

                        Consider selling

                          Further reference projects

                          Killwangen AG, 2 apartment buildings

                          Killwangen AG, 2 apartment buildings

                          Over four years, a challenging plot right by the station became an institutional capital investment – from potential and structure to letting and sale.

                          View project
                          Bremgarten AG, old-town property

                          Bremgarten AG, old-town property

                          A listed old-town property is being fully renovated in keeping with its heritage status: 5 high-quality rental apartments above a modernized restaurant incl. take-away, in execution.

                          View project
                          Küsnacht ZH, MIRAGE

                          Küsnacht ZH, MIRAGE

                          A listed single-family house in Küsnacht is being turned into a spacious lake-view villa – heritage-compliant, luxury segment, in execution.

                          View project