Following a six-month pause on investment during the coronavirus pandemic, Union Investment is one of the first players to return to the German hotel market. The Hamburg-based real estate investment manager has acquired a hotel tower under development in Stuttgart’s Europa district via a forward-funding deal. The purchase price is around €137 million ($165 million). The acquisition will be added to the holdings of open-ended real estate fund Unilmmo: Deutschland. Completion is planned for December 2021.
“The hotel investment markets are slowly re-emerging. The pandemic has passed its peak, so now is the perfect time for us to re-enter the market, enabling us to secure a strong position,” said Andreas Löcher, head of investment management hospitality at Union Investment. “We are planning to expand our high-quality portfolio of some 80 hotels and are focusing on core products with resilient concepts and operators. In this context, we consider the premium budget segme
