Union Investment has sold the Le Méridien hotel at Willy-Brandt-Strasse 30 in Stuttgart at a profit, according to the German asset and fund manager.
The buyer is a joint venture of HWS Immobilien- und Vermögensverwaltung, the family office of the Schommartz family, and MHP Hotel, which operates the hotel.
Following the expiry of the lease, MHP and HWS intend to reposition the hotel. The hotel has been part of the portfolio of the institutional property fund UniInstitutional European Real Estate since 2005. The parties have agreed not to disclose the purchase price.
'After holding the property for almost 20 years, we took the opportunity to dispose of it. The hotel investment market is slowly regaining momentum. The first interest rate cuts are having an effect. We definitely want to continue expanding our high-quality hotel portfolio in the future,' said Andreas Löcher, head of investment management operational at Union Investment.
'We are particularly focussing on the economy and upper upscale segment. We also want to continue to grow internationally and will build on our first acquisitions in the holiday property segment,' added Robin Ahlers, investment manager hospitality at Union Investment.
Le Méridien is located in the immediate vicinity of Stuttgart Palace Gardens. The main railway station and the city's Staatsgalerie are within easy walking distance. The 5-star hotel has 293 rooms, a spacious spa area, two bars, a restaurant and conference rooms.
Union Investment was advised on the transaction by Hogan Lovells and EY Real Estate.
