Strategic investment in hotels

Successful hotel transactions require a high level of specialisation on the part of investors. Union Investment has been investing in hotel properties for over four decades now and has accumulated a wealth of expertise over the years. We are the leading player in the German hotel investment market and have an international reputation as a pioneer in structuring complex transactions.

Growth based on clear criteria

Union Investment covers the full range of global hotel properties, from budget and mid-range to four- and five-star hotels. Our funds require a wide variety of excellent hotel properties. We have significantly increased the proportion of hotels in our overall portfolio in recent years and are on a growth trajectory in Europe and the US. We are also closely monitoring other hotel markets around the world.

We typically acquire hotels as completed buildings, but also invest in many hotel properties in the early stages of development.

Investment criteria for hotels

Hotels worth EUR 20 million and above, or EUR 80 million and above outside Europe
Focus on prime locations in major European and US cities/secondary locations with excellent micro-Locations
Established and financially strong tenants/operators
2–5 star segment
Business, trade show and airport hotels with a minimum of 140 rooms
Leases only, including with profit share elements

Insight into our acquisition profile for hotel properties

Strategic partnerships boost growth

Our team has forged close links with all the major market players, thanks to our involvement in a host of transactions. From Marriott and Hilton to Accor, Motel One, InterContinental and Radisson, we have enjoyed trusted relationships with the large international hotel brands for many years. Our partners value our willingness to help pioneer new market standards.

We have exciting plans for the future. We are open to new ideas, innovative products and new strategic partnerships.

Innovative contract structures

Structuring leases is central to our investment policy. Hotel chains across the world are frequently looking to minimise their operational risk. We meet this need with innovative solutions such as hybrid or sandwich leases – often in conjunction with franchising agreements.

With our strong focus on finding successful solutions, we bridge the gap between UK/US management contracts and continental European leases. As a result, we are able to implement complex transactions professionally in all markets.

Recent acquisition highlights

One of the Investment Management Hospitality team’s most recent achievements is the creation of a high-end hotel portfolio in the US in strategic locations including New York, Chicago and Seattle. We also continue to be active in Germany and Europe and have expanded our global portfolio to include more than 75 properties.

Acquisition: Thompson Hotel Washington D.C.

The lifestyle hotel at the Navy Yards in Washington D.C. branded by Thompson which we secured at a project stage, opened at the beginning of 2020 and includes 225 rooms.
Fund: UniImmo: Global

Acquisition: Holiday Inn Gdansk City Centre

The Holiday Inn Gdańsk City Centre with its 240 rooms in a prominent waterside location on the historic Granary Island in Gdańsk which we secured at the project stage opened in late June 2019.
Fund: UII Hotel Nr. 1

Acquisition: Andel's Berlin

The 4-star hotel Andel’s Berlin has 557 rooms and is mainly used as a conference venue. It boasts 21 conference rooms and 15 meeting suites.
Fund: UniImmo: Deutschland

Acquisition: Innside by Melià Aachen

The hotel Innside by Melià is located in Aachen, Germany, near the border with the Netherlands and Belgium. The hotel has 158 rooms.
Fund: DIFA-Fonds Nr. 3

Show all

Get in touch with our Investment Management team

Andreas Löcher
Head of
Investment Management Hospitality

+ 49 40 34919 3192
andreas.loecher@union-investment.de

The following may also be of interest

UII Hotel Nr. 1 special fund

With its UII Hotel Nr. 1 fund, Union Investment offers institutional investors a very specific solution for investing in the high-growth budget and mid-range hotel Segment.

Find out more here

Asset Management Hospitality

The hotel properties held in the Union Investment portfolio generally have long-term leases. It is thus important to maintain the long-term quality of a hotel and to provide guests with a compelling experience.

Find out more here