Union Investment buys its first hotel in Warsaw

Union Investment is expanding its mid-scale hotel portfolio with the acquisition of a Hampton by Hilton hotel in Warsaw for its institutional fund Defo-Immobilienfonds 1 for an undisclosed amount.

Both the seller and the tenant are subsidiaries of the Austrian S+B Group, which has long been involved in major projects in Central and Eastern Europe.

Opened in June 2014, the Hampton by Hilton has 300 rooms and was the first hotel in Poland to receive an Leed Gold rating for its sustainable construction.

'With a 25-year lease, the property meets our investors’ expectations of a sustainable investment with a high level of income stability,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property. 'Its first investment in Poland sees Defo-Immobilienfonds 1 widening its investment base to include another strong European hotel market.'

For Union Investment, which has held the four-star Radisson Blu hotel in Kraków in the portfolio of sister fund Unilmmo: Europa since 2003, the Hampton by Hilton is its first hotel investment in Warsaw.

Union Investment owns almost 40 hotels of a total value of some €2 bn.

See pages 21 to 28 in the December edition of PropertyEU Magazine for more on hotel investment.