Around a year after the spectacular sale of the Marriott Hotel on the Champs-Elysées, Union Investment Real Estate has returned to Paris as a hotel investor. The Hamburg-based real estate investment manager has acquired a four-star business hotel development in the La Défense business district. The purchase price was not disclosed.
The new hotel is fully leased to Meliá Hotels International.
Planned and developed by Vinci Immobilier and situated on the Esplanade de Charles de Gaulle, the new hotel is fully leased to Meliá Hotels International. The Spanish hotel chain's new Paris flagship property will be added to the holdings of open-ended real estate fund UniImmo: Deutschland, which will thus benefit from steady rental income over a period of 12 years. Following expected completion in the third quarter of 2014, Meliá Paris La Défense will offer 369 rooms across a total area of 24,000 m².
"The investment is a perfect fit with the fund's hotel strategy, which is geared towards top destinations and major international operators," said Dr. Frank Billand, Member of the Management Board of Union Investment Real Estate GmbH.
The UniImmo: Deutschland real estate portfolio currently includes 10 hotels from seven different brands with a total value of around 900 million.
"The one-of-a-kind location in La Défense and high barriers to entry for new build projects are powerful arguments for a successful long-term investment."
The outstanding location of Meliá Paris La Défense will attract business customers and tourists alike. The high-rise building with 20 above-ground floors and five basement floors is highly visible, standing directly at the entrance to Europe's largest office district with views of the Arc de Triomphe and Champs-Elysées. The Metro station Esplanade de La Défense is directly outside the hotel.
Dr. Billand expects that Meliá, the largest Spanish hotel operator, will be able to further consolidate its strong market position in Paris thanks to this first-class product, particularly with regard to Spanish business travellers and leisure customers.
Source: Union Investment Real Estate GmbH