IHG and Union Investment announced plans to modernize the InterContinental Berlin, which is owned by Union Investment Real Estate GmbH and operated by IHG. The news was released during the first day of the 22nd International Hotel Investment Forum, held at the hotel.
The upgrade of the 558 guestrooms and the public areas of the hotel will cost around €60 million. The hotel will remain open during the project, which is expected to be completed by the end of 2022.
The renovation will take place in several phases, starting in May 2019 with the renovation of the large ballroom. Complete refurbishment of the guestrooms in the south and east wings of the hotel is scheduled to start toward the end of the year. Work on the west wing will follow once these areas are completed. The lobby and reception space also will be refurbished.
“InterContinental Berlin is one of the largest and most prominent hotels in our portfolio," said Martin Schaller, head of asset management hospitality at Union Investment, who will oversee the upgrading work together with his team. “By upgrading the property and agreeing on early renewal of the lease, we are making sure the hotel is staying ahead in the diverse Berlin hotel market. We are absolutely delighted that together with IHG, we have been able to develop a joint concept for the future of this outstanding hotel.”
“This is fabulous news for our sponsors and delegates and we’re delighted that IHG and Union Investment are extending their partnership,” said Alexi Khajavi, Managing Director of EMEA Hospitality + Travel Group, Questex, also the parent company of Hotel Management magazine. “The InterContinental Hotel Berlin has been the host venue for IHIF 22 years now and IHG and Union Investment are strategic partners to the Forum. All of us at Questex applaud this investment and look forward to continuing to innovate and improve the information and networking we deliver the IHIF community.”
A team from Hogan Lovells, led by Marc Werner, assisted Union Investment in the project. IHG was assisted by a team from DLA Piper headed by Martin Haller.