Germany’s Union Investment buys dual-brand property in Charleston, S.C.

Photo credit: Union Investment Real Estate GmbH (Hyatt House Hyatt Place Charleston)

Germany’s Union Investment has acquired another hotel property in the U.S. The Charleston, S.C., property, which opened in 2015, comprises an extended-stay Hyatt House and a Hyatt Place hotel.

The purchase price was not disclosed.

The dual-brand property, which features conference space, has a combined 304 guestrooms: the Hyatt House accounts for 113 rooms, the Hyatt Place has 191 rooms. Additional facilities, such as a fitness centre, swimming pool, market and rooftop bar, can be used by all hotel guests. 

“Having bought two first-class lifestyle hotels in Portland, Oregon and Washington, D.C., at the start of the year, we are continuing our program of acquiring U.S. hotels. The Hyatt House also marks the first time we have acquired a fully operational apartment [extened-stay] hotel. This once again demonstrates our openness to new hotel formats, assuming they offer long-term success,” said Andreas Löcher, head of investment management hospitality at Union Investment Real Estate GmbH. “The combination of the two hotel formats and the location in Charleston meets our high standards. The new acquisition is thus a perfect fit with our high-quality hotel portfolio.”

Union Investment now holds six hotels and one new-build project across seven locations in the U.S., with a total value of more than EUR 1 billion.

The vendor of the property is Regent/BN Charleston Holdings. The hotels are leased for 30 years to operator Pyramid Hotel Group. Union Investment is adding the hotel property to the portfolio of its open-ended real estate fund UniImmo: Global.

In 2017, Charleston was named by Condé Nast Traveler Magazine as the best travel destination for leisure travelers in the U.S., for the seventh time in a row. A number of companies from the automotive and tech sectors, such as Boeing, Mercedes, Volvo and Google, have offices in Charleston, fueling demand from business travelers. In addition, the city has the fourth-largest container port in the country, and two years ago Charleston International Airport expanded to handle up to four million passengers per year.