Hamburg’s Union Investment Real Estate (UIRE) has launched the special fund UII Hotel Nr 1 focusing on budget and midscale hotel properties.
The vehicle has a target volume of €250m (£213m) and specialises in investments from institutional investors with a long-term investment strategy. The fund has a debt ratio of 40%.
The geographical focus of the fund will be 60% on Germany, with 40% to be invested in France, Belgium, The Netherlands, Luxembourg, Austria, the UK and Poland. UIRE has launched partnerships with hotel chains Motel One and Holiday Inn Express.
“The segment of budget and midscale hotels in Germany has recorded a significant growth. It is particularly resistant to crisis and offers a stable return due to long-term lettings and a distinct inflation hedge,” said Frank Billand, member of the management board at Union Investment Real estate.
