Union Investment acquires Grand Palais building of the Steigenberger Grandhotel & Spa hotel complex

Union Investment is expanding its strategic exposure to the resort hotel sector by acquiring the main Grand Palais building of the Steigenberger Grandhotel & Spa tourist hotel complex in Seebad Heringsdorf on the island of Usedom in the Baltic Sea.

The acquisition is being made for open-ended real estate fund immofonds 1, which is marketed solely in Austria. The vendor and lessee is Resort Hotel Kaiserbad GmbH & Co. KG. The purchase price was not disclosed.

The Grand Palais currently has 120 guest rooms, with a further 10 set to be added by 2025. The hotel also features two restaurants, a bistro, a wellness area with indoor and outdoor pools, and conference space. The lease runs for 20 years. The vendor and future lessee is planning to carry out extensive energy-efficiency improvements in consultation with Union Investment. This work is scheduled for completion in 2027 and will bring the building — which dates from 2011 — up to the latest sustainability sta