Ninth property for institutional fund UII Hotel Nr. 1.
Union Investment has further expanded its hotel portfolio in Munich by acquiring a Super 8 hotel immediately after completion. The property offers 197 rooms, 68 parking spaces, a total area of around 6,000 sq m and is located on Frankfurter Ring in the Schwabing-Freimann district of the city. The vendor is Munich Hotel Invest GmbH, a member of the Regensburg-based Lambert Group. The hotel will be leased by GS Star GmbH for 25 years initially. The purchase price was not disclosed. The deal was brokered by Colliers International Hotel.
The second Super 8 hotel in Europe
Super 8 is a brand belonging to hotel group Wyndham Worldwide, which acts as franchisor. Wyndham currently manages around 7,400 hotels spread across 15 brands in 66 countries. The Super 8 brand is most common in the US and Canada and is the world's largest brand in the economy segment in terms of number of hotels. The first property in Europe was opened in the spring of 2016 – also in Munich.
"The Munich hotel market has performed exceptionally well in the past ten years – and still has a lot of potential, with regard to both business users and leisure travellers," said Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH. "Accordingly, we have now acquired a third hotel property in Munich within three years for our institutional fund UII Hotel Nr. 1. By investing in different brands in different locations, we can achieve a high level of diversification within what is an internationally sought-after city."
The new Super 8 hotel on Frankfurter Ring extends over six storeys and includes conference facilities targeted at the many companies in the area, such as Amazon, BMW and Osram. Munich Exhibition Centre is just a 20-minute drive away and can be accessed via the nearby motorway. The hotel also has convenient links to destinations such as the Olympia Park, Allianz Arena and BMW World.
The new Super 8 hotel in Munich marks the first time that Union Investment and hotel property operator GS Star have worked together. "With a hotel portfolio that will soon number 13 properties, we are an attractive partner for Union Investment," said Michael Bungardt, CEO of GS Star GmbH. The operator plans to open eight new hotels at locations throughout Germany by 2018.
Investment focus on hotels
The latest transaction statistics compiled by Real Capital Analytics indicate that Union Investment is the ninth-largest hotel investor worldwide, with almost USD 1 billion and nine acquisitions in the period from September 2015 to August 2016. The Hamburg-based investment manager offers a special solution for institutional investors through its UII Hotel Nr. 1 fund. A total of nine properties have already been acquired for the fund, focusing on budget and midscale hotels. In addition to eight German properties, the portfolio includes a hotel in Vienna. The target size for the fund is around 500 million euros.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
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