3 September 2020
Union Investment extends contract for Pullman Berlin Schweizerhof hotel by 15 years ahead of expiry
• HR and Accor deepen collaboration
• Remaining term of contract extended from 15 to 30 years
• Hotel forms part of Unilmmo: Europa portfolio
Union Investment has secured the future of a key Berlin property. In conjunction with a change of operator at the Pullman Berlin Schweizerhof hotel on Budapester Straße, the remaining term of the existing contract was extended from 15 to 30 years. It thus now runs until 2050. The hotel has been held by open-ended real estate fund Unilmmo: Europa since 1999.
Until recently, the hotel was managed by ValueState Hotels. The French operating company signed a 20-year contract in 2015 with an option to extend, replacing the contract with Accor that was originally due to expire in 2019.
Now the shareholders of ValueState Hotels have sold all their shares to the HR Group, which will operate the hotel together with Accor under the latter’s brand. As part of this arrangement, the management contract was converted into a franchise agreement and the remaining term doubled. The HR Group is a growing, owner-managed company that operates 47 hotels with a total of around 9,500 rooms. HR is now one of the largest medium-sized white label operators in Germany; 29 of the 47 hotels are Accor-branded. HR founder and managing director Ruslan Husry: “The acquisition of the Pullman Berlin Schweizerhof sees us adding a prestigious and internationally well-known hotel in the very high-end segment to our portfolio. It reflects the HR Group’s ongoing successful growth strategy.”
“In its role as manager, Accor has positioned the hotel very successfully in the market in recent years and has a good understanding of our requirements as a long-term hotel investor. As an experienced Accor franchisee and strategic partner, HR is excellently placed to ensure the continued success of the Pullman Berlin going Forward.”
Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH
“For us, the Pullman Berlin Schweizerhof is not just one of Berlin’s flagship hotels, but also a flagship for the Pullman brand in Europe,” said Duncan O’Rourke, COO Central Europe at Accor. “We’re delighted that we can now move forward in a long-term collaboration with two such strong partners. We also want this decision to send a signal in the current business climate that we’re confident of the hotel’s long-term success.”
The Pullman Berlin Schweizerhof hotel is located in the City West district, near Kurfürstendamm and Tiergarten park. In addition to its central location the hotel benefits from good public transport and road links. With 18 conference rooms, it is one of the leading conference hotels in the German capital.
For Union Investment Real Estate GmbH