Germany's Union Investment Real Estate GmbH is deflagging and renovating the 6,200-square-meter Sofitel Berlin Gendarmenmarkt to Luc, a boutique hotel slated to open in the spring.
Munich Hotel Partners GmbH will take over the property, operating the hotel as part of Marriott International's Autograph Collection .
Several million euros will be invested in the modernization of the hotel, which was built in 1981, according to the company.
“The strategic fit of hotel brand, concept and hotel asset was the deciding factor for us and our partners,” said Martin Schaller, head of asset management hospitality at Union Investment. “By giving the hotel on Gendarmenmarkt Square a new brand identity, we are demonstrating for the first time in our hotel portfolio that a change of operator and brand can further sharpen the positioning of the hotel while opening up exciting new options for the property.”
Boutique properties, Schaller added, account for only 3 percent of Berlin's hotel market. “There is clearly scope to increase that share. The new Luc hotel is a major step in that direction. As the owner of the property, we believe that distinctive design combined with Marriott’s strong market presence creates a stable foundation on which to take the hotel property forward in Berlin’s diverse market environment.”