First Boston, then Chicago and now New York. German asset manager and real estate group Union Investment has acquired the Courtyard by Marriott World Trade Center for USD$200 million.
This is Union Investment's third acquisition in the U.S. following Boston's Godfrey Hotel in late 2015 and The LondonHouse in Chicago earlier this year in April.
Of its New York buy, Andreas Löcher, head of investment management hotels at Union Investment Real Estate, had this to say: “We are delighted to have agreed the acquisition of this first-class property in New York, the most liquid hotel market worldwide, and see potential for growth in room rates.” Löcher added that the 317-room hotel, which won't officially open for another six weeks, has excellent prospects based on its location and both corporate and leisure demand.
Union Investment's acquisition of the Courtyard by Marriott World Trade Center is strikingly similar to its buys in Boston and Chicago: it, too, was acquired before the property opened.
The hotel was acquired through Union Investment's open-ended real estate found Unilmmo Global. “With the three U.S. hotels we have acquired since November 2015 for Unilmmo Europa and Unilmmo Global, we have achieved the desired diversification in terms of location and operator right from the start, thereby replicating the key characteristics of our European hotel portfolio,” said Löcher.
And, according to Löcher, Union Investment is growing fonder of the U.S. “In the coming years, we intend to tap into new locations for our funds in both America and Europe,” he said.
The Courtyard by Marriott World Trade Center was reportedly sold by developer Hidrock Properties and investment company Robert Finvarb Companies.
Following the acquisition, Union Investment now has a portfolio of 60 hotels representing 16,715 rooms.