TOP INVESTORS Union transacts €500m of hotels in 2015

Union Investment Real Estate was one a leading trader of hotels in Europe during 2015, with six acquisitions and one sale representing a total transaction value of €500 mln.

Acquisitions for the company's retail and special funds ranged from the Holiday Inn in Warsaw and Andel’s conference hotel in Berlin to the Godfrey Hotel in Boston, Union Investment’s first ever hotel acquisition in the US.

All of the new purchases come with long-term leases and have 100% occupancy rates.

Also see, Union Investment reaches €5b real estate transactions milestone in 2015


Hotel business
Union Investment’s hotel portfolio has grown to €2.6 bn in total following the new acquisitions. The portfolio includes over 25 global hotel brands with a total of 13,645 rooms, ranging from budget to four-star hotels.

'Hotels operated by global brands are usually more fungible. However, non-branded hotels also offer good investment opportunities for our funds in robust US hotel markets such as Boston, Chicago and San Francisco,' said Andreas Löcher, head of Investment Management Hotels at Union Investment Real Estate.

Union Investment said it intends to further expand its hotel portfolio in the US and in selected European gateway cities and secondary cities in 2016. The company has earmarked around €300 mln for investment in the various hotel segments this year.