German fund manager Union Investment has expanded its hotel portfolio in Munich by acquiring a Super 8 hotel immediately after completion.
The vendor is Munich Hotel Invest, a member of the Regensburg-based Lambert Group. The purchase price was not disclosed. The deal was brokered by Colliers International Hotel.
The 6,000 m2, six-storey property is located on Frankfurter Ring in the Schwabing-Freimann district of the city and offers 197 rooms and 68 parking spaces. It will be operated by GS Star for an initial 25 years.
The new Super 8 hotel in Munich marks the first time that Union Investment and GS Star have worked together. ‘With a hotel portfolio that will soon number 13 properties, we are an attractive partner for Union Investment,’ said Michael Bungardt, CEO of GS Star. The operator plans to open eight new hotels at locations throughout Germany by 2018.
Super 8 is a brand belonging to hotel group Wyndham Worldwide, and is most common in the US and Canada. It is the world's largest brand in the economy segment in terms of number of hotels. The first property in Europe was opened in the spring of 2016 – also in Munich.
'The Munich hotel market has performed exceptionally well in the past ten years – and still has a lot of potential, with regard to both business users and leisure travellers,' commented Christoph Schumacher, a member of the management team at Union Investment Institutional Property. ‘
'Accordingly, we have now acquired a third hotel property in Munich within three years for our institutional fund UII Hotel Nr. 1. By investing in different brands in different locations, we can achieve a high level of diversification within what is an internationally sought-after city.'
