Union Investment has signed a turnkey purchase contract for the first hotel operated by Motel One in Amsterdam. Let on a long-term lease, the 315-room hotel is developed by Cradle of Development (COD).
The start of construction is scheduled for 2013. The transfer of ownership to the open-ended real estate fund UniImmo is intended to take place after completion at the beginning of 2015. This is Union Investment's seventh investment in the growing budget and midscale segment.
"The cross-border brand awareness of Motel One continues to grow rapidly and will serve as a prosperous base for international expansion. After our commitment to invest in the Motel One Brussels project last year we are delighted to be also involved in Motel One's market entry in the Netherlands," says Dr. Frank Billand, a member of the management board at Union Investment Real Estate GmbH.
The first Motel One in Amsterdam is being built in a central location besides the congress center and Amsterdam RAI fairground. The city center of Amsterdam and Zuidas business district are both easily accessible. In addition to some 10,200 m² GFA (315 rooms) for the hotel, the new complex features additional commercial space of approx. 1,100 m² and 50 underground parking spaces.
Philippe Weyland, managing director of Motel One says: "Besides cities like London or Paris, Amsterdam is one of Europe's top travel destinations and holds great growth potential for the future. We are very happy to cooperate with two strong and experienced partners, Union Investment and COD, in the development of our first Motel One in the Netherlands, centrally located in Amsterdam's business district."
Bas van Veggel, managing director COD: "We are looking forward to realize a future-proof building, that reflects both the sustainability and design standards of COD and Dienst Zuidas, at this prime location in Amsterdam." Gert-Wim Bos from COD adds: "This project shows that, also in this economic era, an expanding tenant like Motel One, combined with contemporary design by ZZDP architects results in a solid institutional investment for Union Investment."
Valued at a total of €1.7 billion, Union Investment's hotel portfolio includes among others the Motel One in Hamburg's Neustadt district and two Holiday Inn Express properties in Hamburg and Dresden. Union Investment has also recently acquired the Barceló hotels in Hamburg and Barcelona.
Source: Union Investment