Union Investment enters resort market with debut deal

Union Investment has entered the resort market for the first time with the purchase of a Marriott Bonvoy Autograph Collection boutique hotel on Lake Tegernsee in Germany.

The property is currently undergoing an internal fit out, which is expected to be completed in December. The hotel will is scheduled to open in March 2023.

The acquisition is being made on behalf of a special fund from Union Investment. The seller is a subsidiary of the developer Planquadr.at, a partner company of Soravia based in Salzburg. The purchase price was not disclosed. The transaction was brokered by Christie & Co.

The hotel is situated 300 metres from Lake Tegernsee. It will offer 100 double rooms, 11 junior suites, 14 standard suites, a 90-seat restaurant, a 180-seat rooftop bar, event facilities and a wellness area with pool.

Sustainability aspects are being taken into account in the construction of the hotel and LEED Gold certification will be sought.

Four Peaks Hospitality, part of the Soravia Group, has already signed a 20-year lease for the property. The hotel will operate under the name Caro & Selig, Tegernsee, Autograph Collection, a soft brand of Marriott Bonvoy, one of the world’s largest and most successful hotel chains.

Investment in hotel assets has been steadily declining since the outbreak of the pandemic.Union Investment remained one of the most active hotel investors in Europe during the crisis. Its global hotel portfolio currently comprises 90 properties with a total value of EUR 6.7 billion.

What they said

Andreas Löcher, head of investment management hospitality at Union Investment, said: “The resort hotel sector has experienced decades of growth. It has shown itself to be crisis-proof and proved its resilience again during the Covid-19 pandemic. New concepts and the ongoing professionalisation of operators are making the asset class increasingly attractive as an investment target for institutional investors. Acquisition of this hotel on Lake Tegernsee further diversifies Union Investment’s hotel portfolio.”

Christian Häupl, CEO of Planquadr.a, said: "It is a great honor for Planquadr.at and Soravia that Union Investment could be convinced by our sustainably developed project with a concept tailored for the location."