German real estate investor Union Investment purchased the nine-year-old Park Inn by Radisson hotel in Kraków, Poland, for approximately €26 million for an institutional real estate fund. The transfer of rights and obligations is scheduled to take place by the end of May.
The vendor is a joint venture between subsidiaries of UBM Development and Lindorcenia. The Radisson Hotel Group manages the hotel as part of a long-term lease.
“With a location that appeals to business and leisure travelers alike and a consistently high occupancy rate, the Park Inn by Radisson Krakow is an excellent fit with Union Investment’s portfolio,” Andreas Löcher, head of investment management hospitality at Union Investment Real Estate, said in a statement. “Following transactions in Warsaw and Gdansk, this is our third hotel acquisition in Poland in the past 12 months and we see further potential in the Polish hotel investment market.”
At the end of January, Union Investment closed the acquisition of a 256-room hotel in Warsaw and signed a purchase agreement for a planned new hotel with 240 guestrooms in Gdansk. Collectively, the three new acquisitions are worth €106 million. The Hamburg-based real estate investment manager now holds a total of six hotels across four different cities in Poland, including the 196-room Radisson Blu Hotel in Krakow’s historic old town, held by UniImmo: Europa since 2009.