Up to CHF 1’000 per night: An entrepreneur invests in luxurious apartments at exclusive locations – similar offerings are increasing in Bern.

The name "Moonshot" is printed on the outer doors of the sandstone building on Bern's Schauplatzgasse. In English, this term represents achieving the impossible, essentially reaching for the stars. The driving force behind these plans is a Zug-based entrepreneur named Alexander Hübner.

For many years, the building between the train station and Bundesplatz was home to the restaurant "gut gelaunt." The property was purchased by Hübner's newly founded company, OCSP AG.

Now, among other things, five business apartments are to be built. A restaurant will also be established on the ground floor. Hübner has not yet revealed the exact concept for the restaurant, but the opening is planned for 2025. The building application has not yet been submitted, as the architect is still working on the plans, according to Hübner.

This property in Bern's Old Town is set to be renovated soon (photo: Nicole Philipp)
Source: derbund.ch

The target audience is businesspeople and wealthy tourists: the prices are expected to vary greatly, ranging from CHF 180 to CHF 1’000 per night. Essentially, it's a type of Airbnb for the affluent, a hybrid between an apartment and a hotel. The advantage: often more space is available than in a hotel room, usually including a kitchen with a coffee machine. Additional services can be booked via an app for an extra charge.

High Returns

Hübner has also sought investors for his project in Bern. However, the minimum commitment for those who want to invest in Bern for the long term starts at CHF 80’000. Investors receive a stake in the company OSCP AG. The company is not publicly traded, so it is a form of private equity.

According to Hübner, the majority of the purchase in Bern is financed by a bank, followed by institutional investors such as companies, and lastly by high-net-worth individuals with assets over CHF 500’000.

A wealthy family in Bern has also invested.
— Says Alexander Hübner, though he provides no further details about the investors

This is not his first project: Hübner has already acquired numerous properties, mostly in prime locations, through various companies, including in Zurich, Lucerne, and plans are also underway for New York.

Next, he aims to take off in Bern: the Zug-born entrepreneur Alexander Hübner (photo: zvg)
Source: derbund.ch

Investors in Bern are expected to receive a high return: Hübner projects an annual return of 14.93% on his company’s website. This is based on experience over the past 10 years. Compared to publicly traded real estate funds, this is quite high.

However, the calculated return is "not unusual" for high-risk private equity investments.
— Bernhard Eicher, director at the real estate consulting firm Wüest Partner in Bern

In this case, development risks in particular must be borne. Additionally, the market for such serviced or business apartments is more susceptible to economic fluctuations than the market for regular rental apartments.

Bernhard Eicher, Director at the real estate consulting firm Wüest Partner in Bern, highlights the impact of economic fluctuations when investing in business apartments (photo: Christian Pfander)
Source: derbund.ch

And finally, these are privately traded shares, meaning they cannot be easily resold.

In return, investors expect a significantly higher return compared to the traditional housing market.
— Bernhard Eicher

Increasing Number of Serviced Apartments

The number of serviced apartments has also increased in Bern in recent years.
— Bernhard Eicher

However, the risk of investment is high because it is tied to a single building.

The high prices for overnight stays might be of interest primarily to senior officials from government or international organizations in Bern.

The City of Bern does not have specific data on such serviced apartments, but they tend to refer to them as "managed apartments." According to Philipp Wigger from the Bern Urban Planning Office, it has been observed that several large new projects in this segment have emerged in recent years.

Since 2018, several providers have developed larger projects with furnished and managed apartments in the service zone outside the Old Town. These include, for example, Stay Kook in Wankdorf-City, City Pop at Belpstrasse 23, the conversion of Hotel Alpenblick in Breitenrain, Evis Home on Stauffacherstrasse, and Los Lorentes Residences on Murtenstrasse.

Stay Kook Hotel Offers Its Services on Trüsselstrasse (photo: Christian Pfander)
Source: derbund.ch

So far, no major projects have been developed in the Old Town. This is because the city has heavily regulated the creation of such offerings in this area. In the lower Old Town, renting out second homes from the second floor upwards is prohibited.

The rules are somewhat more relaxed in the upper Old Town: here, new second homes are only prohibited in the attic floors. The Schauplatzgasse, where Hübner’s project is located, is in the upper Old Town. In the four-story building, Hübner plans to establish either an apartment or office space on the top floor.

The Wolf of Wall Street is a Fan

Hübner is no stranger to the hospitality industry. He was an early adopter of business apartments with his company Le Bijou, which he started in Zurich. Together with his wife, Madeleine Hübner, he was able to showcase a luxury apartment on Swiss public broadcaster SRF.

A Room in the Luxury Apartments Le Bijou in Zurich (photo: provided)
Source: derbund.ch

Hübner gained global attention with Le Bijou during the pandemic: he offered a comprehensive service in Zurich for businesspeople who wanted to quarantine without sacrificing luxury.

According to the Washington Post, the service included a private coronavirus test (CHF 500), twice-daily nurse visits (CHF 1’800), and 24/7 care (CHF 4’800), along with a personal chef and "quick access" to an exclusive clinic.

Among those expressing their enthusiasm for Hübner's offerings on the website are Apple co-founder Steve Wozniak and Jordan Belfort, the author of The Wolf of Wall Street, which was later adapted into a film.

Start InvestingInvest  Book CallCall  Join NowApply