Four-star superior hotel on Friedrichstrasse operated by Spanish brand Melia acquired for special fund.
Union Investment has secured another high-yield hotel property in Berlin. This is the third purchase of an established branded hotel in the German capital within six months, following the acquisition of andel’s conference hotel and the Hampton by Hilton planned for a site close to Alexanderplatz. As part of an off-market transaction, Union Investment has acquired the Melia Berlin from Grundstucksverwaltungsgesellschaft Am Weidendamm Berlin-Mitte mbH. Opened in 2006, the four-star superior hotel is fully let on a long-term basis to Sol Melia Deutschland GmbH, a wholly-owned subsidiary of Spanish hotel group Melia Hotels International. The property includes a separate restaurant which is let on a long lease to Maredo. The Melia Berlin will be added to the portfolio of special fund DEFO Immobilienfonds 1. The purchase price was not disclosed.
Offering a total of 364 rooms and 64 underground parking spaces, the hotel benefits from a standout location in the heart of Berlin on the corner of Friedrichstrasse and Am Weidendamm, opposite the river Spree. “A combination of the high occupancy rate, a successful brand and a financially strong Europe-wide leading hotel operator help to make this investment compelling,” said Dr. Christoph Schumacher, a member of the management board at Hamburg-based Union Investment Institutional Property GmbH. For the DEFO Immobilienfonds fund, the investment means a long-term revenue stream, an improved letting ratio and enhanced diversification within Germany. “The purchase of another hotel for our special fund in Berlin will allow us to participate in the growing attractiveness of the German capital as a destination for both business and leisure travellers.”
DEFO Immobilienfonds 1 has assets of some 790 million euros and holds five hotels from different brands. In total, Union Investment’s hotel portfolio, spread across seven open-ended retail and special funds, comprises 48 hotels worth approximately EUR 2.7 billion. Alongside the Melia Berlin, it includes two other flagship hotels from the leading Spanish brand, one in Dusseldorf (on Hofgarten park) and one in Paris La Defense.
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.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.