Union bags Berlin hotel project from local developer

Union Investment has acquired the three-star Hampton by Hilton hotel development in Berlin-Mitte from developer Lambert Wohnbau for an undisclosed amount.

The asset will be added to Union's UII Hotel Nr. 1 institutional hotel fund, bringing the fund's portfolio to seven hotel assets in Germany and in Austria.

Primestar has agreed to operate the 344-room hotel in Berlin on a long-term lease. Completion of the asset is scheduled for the first quarter of 2017.

'We are delighted to be adding this up-and-coming hotel brand to our thematic fund. Hampton by Hilton is a new and contemporary product concept that is set to establish itself as quickly in the German market as it has in the US,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property.

Union Investment was advised by Clifford Chance. Colliers International Hotel and law firm Zirngibl Langwieser advised Lambert Wohnbau. The leaseholder, Primestar, was advised by KPMG Law.