Following its first hotel acquisitions in Boston and Chicago, the Hamburg-based real estate investment manager has now entered the New York City hotel market.
Union Investment continues to invest actively in the US. Following its first hotel acquisitions in Boston and Chicago, the Hamburg-based real estate investment manager has now entered the New York City hotel market. In a deal worth in excess of 200 million USD, Union Investment has secured the Courtyard by Marriott World Trade Center for its open-ended real estate fund Unilmmo: Global. The 317-room hotel with 249 king-sized and 68 double rooms celebrates its official opening in approximately six weeks. Union Investment is buying the property from developer Hidrock Properties and investment company Robert Finvarb Companies.
With 30 stories and total usable space of 154,200 square feet, the new development enjoys a unique location in Manhattan’s financial district, close to the World Trade Center complex and Ground Zero memorial, as well as to the new Westfield shopping mall. “Thanks to the one-off location with demand generators in the business and leisure segments, the hotel has excellent prospects of becoming the new Courtyard by Marriott flagship in New York,” said Andreas Löcher, head of Investment Management Hotels at Union Investment Real Estate GmbH. “We are delighted to have agreed the acquisition of this first-class property in New York, the most liquid hotel market worldwide, and see potential for growth in room rates.” As befits its premium location, the hotel has excellent public transport links, with several subway stations located just three minutes’ walk away. One of the hotel’s stand-out features is its rooftop restaurant on the 28th storey with an outside area and spectacular views over downtown Manhattan.
Abraham Hidary, who’s firm, Hidrock Properties is one of New York City’s most active developers, added, “We’re proud to deliver this iconic property to downtown Manhattan and add another building to our city’s breath-taking skyline. We wish Union Investments the best of luck on this special acquisition.”
The new acquisition sees Union Investment’s hotel portfolio increase to 60 hotels with a total of 16,715 rooms. In the past six years, the value of the company’s hotel holdings has risen by more than 100 per cent and they are now worth EUR 3.37 billion. “With the three US hotels we have acquired since November 2015 for Unilmmo: Europa and Unilmmo: Global, we have achieved the desired diversification in terms of location and operator right from the start, thereby replicating the key characteristics of our European hotel portfolio. In the coming years, we intend to tap into new locations for our funds in both America and Europe,” said Andreas Löcher.
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