Union Investment is the investment arm of the DZ Bank Group. One of its subsidiaries, Union Investment Real Estate GmbH, is reportedly Germany's second-largest property investment association, and specializes in acquiring hotels from budget up.
The investment arm shows that his an appetite for hotels across the chain scales. The latest acquisition is a yet-finished 197-room Super 8 in Munich. The hotel is located on Frankfurter Ring in the Schwabing-Freimann district of the city. The seller is Munich Hotel Invest GmbH, a member of the Regensburg-based Lambert Group. The hotel will be leased by GS Star GmbH for 25 years initially. The purchase price was not disclosed and the deal was brokered by Colliers International Hotel.
"The Munich hotel market has performed exceptionally well in the past ten years – and still has a lot of potential, with regard to both business users and leisure travellers," said Dr. Christoph Schumacher, of Union Investment Real Estate. "Accordingly, we have now acquired a third hotel property in Munich within three years for our institutional fund UII Hotel Nr. 1. By investing in different brands in different locations, we can achieve a high level of diversification within what is an internationally sought-after city."
The new Super 8 hotel in Munich marks the first time that Union Investment and hotel property operator GS Star have worked together. "With a hotel portfolio that will soon number 13 properties, we are an attractive partner for Union Investment," said Michael Bungardt, CEO of GS Star GmbH.