City of Ludwigshafen waives right of first refusal for Leoso Hotel!

City of Ludwigshafen waives right of first refusal for Leoso Hotel!

On Tuesday, June 10, 2025, the Ludwigshafen city administration made an important decision regarding the Leoso Hotel at the main train station, which has been closed for over a year. She has decided not to exercise the right of first refusal for the property. This decision is part of a broader consideration of urban development. Mayor Jutta Steinruck emphasizes that a purchase of the property would have been considered, but the requirements under the Building Act are not met and therefore there is no legally secure exercise of the right of first refusal.

According to the legal examination, the "welfare of the general public" cannot be clearly justified, as urban planning within the framework of the workshop process is non-binding. There is also a lack of a clearly defined public use for the property, which makes the decision even more difficult. As the Rhine Palatinate reported, there are also legal risks in the event of a short-term judicial review of the exercise of the right of first refusal, which could lead to possible claims for damages or reversal.

Why is the right of first refusal important?

The right of first refusal is a valuable legal instrument that enables municipalities to acquire real estate with priority. It offers cities the opportunity to control active urban development and harmonize it with local needs. Especially in times when many cities in Germany are struggling with atrophied inner city areas and vacant commercial spaces, the right of first refusal can make a significant contribution to the flourishing of cities. Municipalities that are able to use this instrument strategically can promote development processes while at the same time taking private interests in the real estate industry into account. According to the IFH Cologne Cities like Hanau have used the right of first refusal to revitalize the city center and successfully reduce vacancies.

The next steps

Although the city administration has now withdrawn from the right of first refusal, it still plans to develop solutions for the use of the building in collaboration with the new owners of the Leoso Hotel. There are currently no financial resources approved that would enable short-term financing of the purchase. It remains to be seen which development strategies will be pursued in the future in order to meaningfully integrate the property into the cityscape of Ludwigshafen. The city administration is committed to finding the best possible solution for everyone involved and thus making a valuable contribution to city design.