For many years after the 1989 fall of the Berlin Wall and the collapse of Soviet control over Eastern Europe, Berlin became the epicenter for progressive urban planning and novel architecture. As Germany melded two Berlins into one, neighborhoods on the communist side of the wall suddenly became fashionable and sought after, alive with construction cranes, new museums and trendy cafes. When Germany’s capital was moved back to Berlin from Bonn in 1999, it seemed that no German city could ever compete with Berlin’s celebrity status.

During the past few years however, Hamburg, Germany’s second largest city, once known mostly for its stolid office buildings, decadent red-light district and hard-working, grayshrouded port, has taken up the challenge. Thanks to new architecture, design hotels and cutting-edge restaurants, it has become a mecca for the new breed of young German city planners, architects, artists, musicians, journalists and aerospace engineers.

Hamburg’s downtown renaissance has been turning heads throughout Europe, as reports about its new HafenCity (Harbor City) project appear throughout the world’s business and arts media. Although this Hanseatic port city is mildly embarrassed by all the attention Hamburg’s renaissance is not surprising. Despite its seemingly newfound riches and glittering redevelopment, this northern German city of almost 2 million residents has been a thriving commercial center since 1189, when Emperor Friedrich I Barbarossa made Hamburg an Imperial Free City, granting it free trading rights and an exemption from customs duties. During its long and tumultuous history Hamburg grew into one of Europe’s most prosperous cities and the continent’s second largest port, but it also went through a period of intense devastation during World War II, when 80 percent of its port, 40 percent of its industries and more than half of its residential housing were destroyed by Allied bombing attacks. During reconstruction following the war, Hamburg rebounded, and it was not long before the city became, once again, a leader in maritime trade and a center for Germany’s huge print and broadcast media companies.

Hamburg’s industrious downtown core has always been softened, however, by the presence of three rivers — the Elbe, Alster and Bille —dozens of narrow canals and two lakes. It is in the city’s watery southern area, between its historic warehouse district, Speicherstadt, and the river Elbe, where municipal and private entities are creating HafenCity, one of the world’s most ambitious development ventures.

Conceived in 1997, with construction started in 2001, HafenCity will, when completed in about 2020, be composed of eight new distinct urban quarters, increasing the size of Hamburg’s city center by 40 percent. Some of the new quarters will contain a mix of residential housing and shops, waterfront restaurants, pedestrian pontoons and marinas. About 12,000 residents are expected to live in modern apartment units overlooking the harbor. Companies, from small high-tech firms to large corporations, will be located in other HafenCity districts, providing employment for 40,000 workers. Some of the new commercial buildings in the business quarter will be quite impressive, including software giant SAP’s glass edifice at Am Grasbrook and the new German headquarters of the logistics company Kühne + Nagel. The European headquarters of China Shipping moved into its new HafenCity building in 2005. Hamburg’s other major corporate employers, including Astra Zeneca, Alexspringer Verlag, Beiersdorf AG, Gruner + Jahr, Hapag- Lloyd, Otto Versand and Unilever GmbH, all have offices nearby and are participating in various ways in the HafenCity project.

INFO TO GO

Hamburg Airport (HAM) is about 20 to 25 minutes from downtown via taxi or airport bus. Flights arrive from other cities in Germany and Europe, but not from outside the European Union. Many visitors arrive by train, and there are four rail stations i n Hamburg with many direct Inter- City and InterCity Express trains to major European cities, including Berlin (21⁄2 hours), Munich (6 hours) and Paris (overnight train). Within Hamburg taxis are plentiful, river ferries are part of the city’s transit system, and the ubiquitous U-Bahn and S-Bahn subway trains run frequent service from 4 a.m. until 1 a.m. Another option for traveling around the city is by rented bike. Hamburg is relatively flat, bike paths crisscross the city and bikes can be taken aboard public transport when your legs give out.

The Überseequartier will be developed into HafenCity’s cultural district, where the Elbe Philharmonic, designed by Swiss architects Jacques Herzog and Pierre de Meuron, is scheduled to open in 2010. The building, a brilliantly designed translucent glass hall placed atop an abandoned brick warehouse at the end of a pier, will have, like most of HafenCity’s buildings, a beautiful view of the harbor on one side and the city skyline on the other. Additional unique structures include the historic Kaispeicher B warehouse building, which has been converted into the Peter Tamm International Maritime Museum, and the Hamburg Cruise Center, which has welcomed more than 60 cruise ships per year since 2004. This past summer saw the opening of the BallinStadt Emigrant World Hamburg, a 12-million- euro restoration of Hamburg’s late 19th century “Emigrant City,” where more than 5 million emigrants waited for steamships taking them to new lives on the other side of the Atlantic.

The HafenCity project may be the largest, but it’s not the only change taking place in Hamburg these days. The CCH-Congress Center Hamburg, located in the midst of Hamburg’s attractions, was recently expanded to include a 75,000- square-foot multi-function exhibition hall and conference area, bringing its total exhibition space to 130,000 square feet, with more than 43 conference rooms for a total of 16,000 seats, including 6,000 in the new exhibition hall. Several 5-star, boutique hotels are attracting young European business travelers and film stars to center city, new cafes are appearing along the banks of the Elbe, stunning Water Light concerts take place nightly during summer at a lakeside park and trendy restaurants such as Eisenstein, WA-YO, Bar Rossi and Süllberg Bistro keep pushing Hamburg’s culinary envelope.

LODGING

FAIRMONT HOTEL VIER JAHRESZEITEN

Founded in 1897 by Friedrich Haerlin, this hotel opened with only 11 guestrooms, but the owner kept buying nearby houses until the hotel encompassed an entire block of downtown Hamburg. Today its 156 guestrooms and suites, and the public areas, are furnished with antique tapestries and furniture. All guestrooms are equipped with modern hightech features, including complimentary Internet access. Haerlin Restaurant, one of the leading restaurants in Germany, is on the property, as is the traditional Jahreszeiten Grill, restored to its original 1920s Art Deco style. Six additional dining venues are located throughout the hotel. Neuer Jungfernstieg 9-14, tel 49 40 349 40, http://www.fairmont.com/hamburg $$$$

SIDE DESIGN HOTEL
This 5-star, 6-year old property is located in central Hamburg, one of several deluxe Hamburg hotels that show off theb best in European design and service. With a façade of glass and stone, this 12-story, 178-room property offers a garage, indoor swimming pool and fitness center, business center, in-room Internet access, and the trendy Side bar. Many of the lighting fixtures and room amenities, by Italian designer Matteo Thun, are available for purchase, including the hand-blown, opaque glass pillars and the clear-cut wall-mounted lamps. The hotel’s restaurant, Fusion, is run by German celebrity chef Olaf Neimeier, known as “Chef Picasso” to his devoted followers. Drehbahn 49, tel 49 40 309 990, http://www.side-hamburg.de $$$$

SOFITEL HAMBURG ALTER WALL
Stylishly designed, this hotel is great for business, with all 241 guestrooms fully equipped with high-speed Internet service. The property offers an indoor heated pool, 26 meeting rooms, fitness room with sauna and Turkish bath, and it is within distance of the exhibition center and the HafenCity project. Its Seven Heads Bar overlooks the Alsterfleet canal, and Ticino, its Mediterranean-style restaurant, is great for leisurely dinners. Alter Wall 40, tel 49 40 369 500, http://www.sofitel.com $$$  $

DINING

JACOBS RESTAURANT

Don’t let the generic name fool you; Jacobs is one of Hamburg’s classiest restaurants, a Michelin-starred property located within the 5-star Louis C. Jacob Hotel, a 200-year-old mansion overlooking the Elbe River. Everything about the restaurant exudes quality and beauty, including the wall murals, the heavy crystal chandeliers and the stunning view of the Elbe. Let the master sommelier suggest a few good wines from the wellstocked cellar as you gaze at the open kitchen, watching the precise movements of the kitchen staff under Chef Thomas Martin. Elbchaussee 401-403, tel 49 40 822 550, http://www.hotel-jacob.de $$$$

BROOK

Located on a lovely street in the trendy Altstadt neighborhood, near Speicherstadt, Brook is classically designed by Ratke Droppelmann and the haute cuisine, prepared by Chef Lars Schablinski, includes excellent German meat, fresh fish and pasta, and a wide choice of German, French and Italian wines. Bei den Mühren 98, tel 49 40 3750 3128, http://www.restaurant-brook.de $$$

EISENSTEIN

Situated within the Zeisehallen, a converted ship propeller factory in the hip Altona district east of the city center, this is a great atmospheric restaurant for a business lunch, with high ceilings, skylights and a nicely restored industrial look. The food is prepared by Chef Jes Autzen in an efficient, no-nonsense manner, offering steaks, salads, pastas and wonderful desserts, but many customers come just for its famous wood-fired pizzas. Friedensallee 9, tel 49 40 390 4606, http://www.restauranteisenstein.de $$

Just the Facts

Time Zone: GMT + 1 Phone Code: 49 Germany, 40 Hamburg Currency: Euro Entry/Exit Requirements: U.S. citizens require a passport; visas are not required for business or leisure stays of up to 90 days. Official Language: German, however English is widely understood. Key Industries: Shipping and shipyards; media, including publishing, advertising, film, radio, TV and music; civil aerospace; finance; heavy industry, including steel, aluminum and copper.

Checking in With Michael Krog
General Manager, DS-Bauconcept GmbH, Hamburg

Krog’s company is involved in real estate development and business investments in Hamburg, as well as in the German cities of Duisburg, Munich and Stuttgart.

Global Traveler: Will the economy in Hamburg be better, the same, or worse, in the next several years?

Michael Krog: I think the economy and business climate in Hamburg will perform very well during the next few years, probably better than the economy of Germany on average.

GT: Will the development of HafenCity help the companies already doing business in Hamburg? Do you think it will attract more tourists and new businesses to the city?

MK: Yes, I do. And you already can notice it. More investors are interested in Hamburg, more companies are coming to Hamburg to do business as a result of this new development, and lots of tourists are coming because of HafenCity.

GT: What are fun things to do on weekends in Hamburg?

MK: For visitors to the city, I would suggest going on a harbor tour, seeing some musical theater, the shops, opera, eating at good restaurants and visiting HafenCity. For me personally, I am so busy during the week that I like to spend time with my family on weekends at our home. Of course, there are lots of sports activities in the city for kids to do, and biking and walking in the parks here.

GT: If you can name something in Hamburg that needs improvement, what would it be?

MK: Everything really works so well in Hamburg that the only thing I would improve is the international flight connections from our airport near the city. When I need to fly overseas, I often must fly to Frankfurt or Munich to get my international flight.

DIVERSIONS

Every Sunday morning, beginning at dawn in the St. Pauli district, near the Elbe, locals and visitors mingle at the outdoor Fischmarkt, a Hamburg tradition since 1703. There is plenty of action here, with fishmongers yelling out prices for eels, shrimp and smoked fish, and buyers haggling over the cost of everything. In the nearby Fischauktionshalle, hot sausages and beer are sold as breakfast items to visitors coming in out of the cold (open October to March).

Another St. Pauli tradition is walking down the Reeperbahn, one of Europe’s largest red-light districts, where men (and women) ogle the street girls and stop for drinks or food at one of the hundreds of neon-lit nightclubs, bars and restaurants. In the 1960s the Beatles gave some of their earliest performances at a raucous St. Pauli bar called the Star Club, which is no longer in business, but next summer Hamburg will officially commemorate the time the Beatles spent in the city by opening “Beatles Platz,” a square on the corner of Reeperbahn and Grosse Freiheit that will feature sculptures of the Fab Four, plus original bassist Stuart Sutcliffe, standing atop an oversized record. More than 100 high-tech square lights will provide a light show, and Beatles’ song lyrics will be engraved into the record’s grooves.

There are numerous guided walking and bus tours through several Hamburg neighborhoods, including HafenCity (30 Am Sandtorkai, tel 49 40 3690 1799, http://www.hafencity.com), and several excellent museums, including the famous Hamburger Kunsthalle (Glockengiesserwall, tel 49 40 428 131 200, http://www.hamburger-kunsthalle.de) with its large collection of 18th to 20th century art, and the fascinating Museum für Kunst und Gewerbe — Museum of Arts & Crafts — (Steintorplatz 1, tel 49 40 428 542 732, http://www.mkg-hamburg.de), where it could take a full day just to get through the poster, graphic and Italian design rooms.

Hot restaurants and bars can be found in many different neighborhoods. Try Kochsalon (Bernhard-Nocht-Strasse 95, tel 49 40 3179 6070) in St. Pauli, a late night stand-up snack bar with its own music DJ, or G-Bar (Lange Reihe 81, tel 49 40 2880 4868) in St. Georg, with violet and rose light strips on the walls and a mixed gay/straight crowd. Hamburg’s current mayor, and leader of Hamburg Christian Democratic Union majority, is Ole von Beust, one of the few openly homosexual mayors in Germany, and a vibrant gay community here contributes to the creative cultural energy of the city.

A wide array of dance venues, movie theaters and live music, from jazz and blues to opera, are easily accessible in Hamburg. Visitors note: In summer 2007, Hamburg became the first German city to pass a citywide law that will prohibit smoking in public buildings, including government buildings, schools, restaurants, clubs and theaters. Exceptions are granted to bars and pubs that have separated rooms for smokers, and to gastronomic tents at fairs. The new no-smoking regulations kick in on Jan. 1.