Union acquires Motel One hotel project in Amsterdam

Union Investment has signed a turnkey purchase contract for the first hotel to be operated by Motel One in Amsterdam. Financial details were not disclosed.

Let on a long-term lease, the 315-room hotel will be developed by Cradle of Development (COD). The start of construction is scheduled for 2013, with the transfer of ownership to the open-ended real estate fund UniImmo: Europa set to take place after completion at the beginning of 2015.

The deal marks Union Investment's seventh investment in the budget and midscale hotel segment. 'After our commitment to invest in the Motel One Brussels project last year we are delighted to be also involved in Motel One's market entry in the Netherlands,' said Frank Billand, management board member at Union Investment Real Estate.

The first Motel One in Amsterdam will be built next to the RAI exhibition and congress centre. In addition to some 10,200 m² of hotel facilities, the new complex features commercial space of 1,100 m² and 50 underground parking spaces.

Valued at a total of EUR 1.7 bn, Union Investment's hotel portfolio includes the Motel One in Hamburg's Neustadt district and two Holiday Inn Express properties in Hamburg and Dresden. Union Investment has also recently acquired the Barceló hotels in Hamburg and Barcelona.