Union Investment has secured another high-yield hotel property in Berlin, with the acquisition of a 4-star hotel on Friedrichstrasse operated by Spanish brand Meliá.
As part of an off-market transaction, Union Investment acquired the Meliá Berlin from Grundstücksverwaltungsgesellschaft Am Weidendamm Berlin-Mitte mbH for an undisclosed sum. The asset will be added to the portfolio of special fund DEFO Immobilienfonds 1.
This is the third purchase of an established branded hotel in the German capital within six months, following the acquisition of andel’s conference hotel and the Hampton by Hilton planned for a site close to Alexanderplatz. Opened in 2006, the 4-star superior hotel is fully let on a long-term basis to Sol Meliá Deutschland GmbH, a wholly-owned subsidiary of Spanish hotel group Meliá Hotels International. The property includes a separate restaurant which is let on a long lease to Maredo.
“A combination of the high occupancy rate, a successful brand and a financially strong Europe-wide leading hotel operator help to make this investment compelling,” said Dr. Christoph Schumacher, a member of the management board at Hamburg-based Union Investment Institutional Property GmbH.
For the DEFO Immobilienfonds fund, the investment means a long-term revenue stream, an improved letting ratio and enhanced diversification within Germany. “The purchase of another hotel for our special fund in Berlin will allow us to participate in the growing attractiveness of the German capital as a destination for both business and leisure travellers.”
DEFO Immobilienfonds 1 has assets of around €790m and includes five hotels from various brands. In total, Union Investment’s hotel portfolio, spread across seven open-ended retail and special funds, comprises 48 hotels worth approximately €2.7bn. Alongside the Meliá Berlin, it includes two other flagship hotels from the leading Spanish brand, one in Düsseldorf (on Hofgarten park) and one in Paris La Défense.
