Union Investment acquires Warsaw hotel project from UBM

German investor Union Investment has acquired the Holiday Inn Warsaw – City Centre development project for its open-ended real estate fund Unilmmo: Deutschland.

The turnkey purchase will take effect on completion of the hotel in 2018. Financial details were not disclosed.

Austrian company UBM Development will construct the hotel on Twarda Street in Warsaw by the first quarter of 2018 and operate it for Union Investment until 2038. Day-to-day management will be handled by the InterContinental Hotels Group (IHG) under the Holiday Inn brand.

Construction work on the Holiday Inn Warsaw – City Centre will begin in the first quarter of 2016 and is scheduled to last for 22 months. The hotel will be realised as a green building, targeting LEED Gold certification, and will feature 254 rooms, a gym and a 24-hour restaurant with a bar and extensive conference facilities.

'UBM will develop the property and be responsible as leaseholder for the successful running of the hotel until 2038,' said UBM CEO Karl Bier, commenting on the investment model. 'Through this forward purchase arrangement, we have secured a hotel at the project stage in a very good inner-city location in Warsaw which is an excellent addition to the Unilmmo: Deutschland portfolio,' added Andreas Löcher, head of investment management hotels at Union Investment Real Estate.