Union acquires 4-star hotel in Düsseldorf

German investment manager Union Investment has acquired a four-star hotel in Düsseldorf from the Spanish hotel operator Meliã.

The investment volume came to €35 mln.

The 201-room asset opened in 2009 and is leased to the Spanish group with a remaining lease term of 16 years. The 14,000 m2 property was acquired for Union's open-ended real estate fund Unilmmo: Deutschland.

Meliã Hotels International, established in 1956, is the largest hotel operator in Spain and currently has more than 350 hotels in 35 countries across four continents. The individual hotel brands include Gran Meliá, Meliã, ME, Innside, Tryp by Wyndham, Sol and Paradisus.

Opened in 2009, the 4-star Meliã Dusseldorf benefits from a very central location in the immediate vicinity of the old town, the main Königsallee shopping area and the Rhine. It features 201 bedrooms, 2 restaurants, extensive conference facilities, a gym and Yhi Wellness Centre.

Clifford Chance provided Union Investment with legal advice on the transaction. CBRE advised the seller, a fund managed by Pramerica Real Estate.

Union Investment laid the foundations of its partnership with hotel chain Meliá back in 2012 when it financed the Meliá flagship hotel in Paris La Défense.

Union's European hotel portfolio comprises 32 hotels in the budget to first-class segment with a total real estate asset value of €1.8 bn, making the German fund manager one of the biggest investors in the hotel sector.