Union Investment has further expanded its hotel portfolio in Munich by acquiring a Super 8 hotel immediately after completion. The property offers 197 rooms, 68 parking spaces, a total area of around 6,000m² and is located on Frankfurter Ring in the Schwabing-Freimann district of the city. The vendor 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. The deal was brokered by Colliers International Hotel.
Super 8 is a brand belonging to hotel group Wyndham Worldwide, which acts as franchisor. Wyndham currently manages around 7,400 hotels spread across 15 brands in 66 countries. The Super 8 brand is most common in the US and Canada and is the world's largest brand in the economy segment in terms of number of hotels. The first property in Europe was opened in the spring of 2016 – also in Munich.
"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, a member of the management team at Union Investment Institutional Property GmbH. "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. The operator plans to open eight new hotels at locations throughout Germany by 2018.
