Germany: New hotels prove decisive for investor interest
Germany may be struggling with the migrant crisis and with the high numbers of people moving around the country but that is not stopping real estate investors from seeing another group of travellers as part of their investment strategy — hotels, existing and in development, are increasingly regarded as appropriate investments for the generation of long-term, stable income. According to CBRE Hotels, Germany was the largest hotel investment market in Europe last year, with transaction activity of €4.45 billion, a 47 percent increase over 2014.
Union Investment Real Estate recently acquired the four-star Meliá Berlin in Berlin’s Mitte district from Grundstücksverwaltungsgesellschaft Am Weidendamm Berlin-Mitte mbH. The 364-room hotel will be allocated to the DEFO Immobilienfonds 1 special fund. The Meliá Berlin, opened in 2006 and located on the corner of Friedrichstrasse and Am Weidendamm, opposite the River Spree, is the third branded hotel purchase by Union Investment