Germany's Union Investment expands US hotel portfolio
Real estate manager Union Investment has added a US hotel property with more than 300 rooms its open-ended real estate fund.
The €35.3bn manager said, on behalf of UniImmo: Global, it acquired the two-format property in Charleston, South Carolina from Regent/BN Charleston Holdings for an undisclosed sum.
Opened in 2015, the property comprises a Hyatt House apartment-style hotel and a Hyatt Place hotel. The two brands offer 304 rooms in total.
The hotels are leased for 30 years to the operator, the Pyramid Hotel Group.
Andreas Löcher, the head of investment management hospitality at Union Investment Real Estate, said: “Having bought two first-class lifestyle hotels in Portland, Oregon and Washington DC at the start of the year, we are continuing our programme of acquiring US hotels.
The Hyatt House also marks the first time the company has acquired a fully operational apartment hotel, Löcher said.
“This once again demonstrates our openness to new hotel formats, assuming they offer long-term success.
“The combination of the two hotel formats and the location in Charleston meets our high standards. The new acquisition is thus a perfect fit with our high-quality hotel portfolio,” Löcher said.
Union Investment now holds six hotel properties in the US and one new-build development project across seven locations, with a total value of more than €1bn.