Union Investment has acquired the Holiday Inn Express hotel development in Dresden for one of its special open-ended real estate funds. The vendor is Foremost Real Estate Dresden GmbH, which is developing the three-star hotel for operator Foremost Hospitality HIEX GmbH.
With its first hotel investment in the capital of Saxony, Union Investment is expanding its extensive hotel portfolio in the midscale segment. The Holiday Inn Express Hamburg City Centre was added to the company's holdings in 2008 and is also operated by Foremost Hospitality HIEX GmbH. In addition, the Hamburg-based property fund manager acquired Motel One Hamburg am Michel a year ago.
Union Investment's hotel portfolio is broadly diversified in terms of both region and operator. It comprises 25 properties and projects worth 1.7 billion in total.
Source: Union Investment