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The Radisson Hotel Group has secured one of the best hotel locations in Berlin’s Mitte district long term by signing a 20-year lease with Union Investment. The existing lease with Union Investment for the Radisson Blu Hotel in the DomAquarée CityQuartier complex expires at the end of 2024, but early extension until at least 2040 was agreed in December. In addition to a comprehensive modernisation programme that will deliver visible improvements, the signing of the lease also sees the hotel being rebranded from Radisson Blu to the premium Radisson Collection brand. After modernisation, the hotel will operate under the new brand in the upper upscale/luxury segment. The Radisson Collection comprises 15 hotels worldwide. The 427-room hotel in DomAquarée CityQuartier will be the first Radisson Collection hotel in Germany and the second hotel with this branding in the UniImmo: Deutschland fund after the Radisson Collection Brussels.
Radisson expects the repositioning to attract additional guests to the Berlin hotel, especially from Asia. The international hotel chain is investing in the redesign of the 427 rooms/suites and bathrooms, as well as the lobby, bar and conference areas. Union Investment, as the owner of the property, will also contribute around EUR 20 million to the modernisation and maintenance work, to include the roof and structure, which is being brought forward to refresh the building. The modernisation programme began in November 2020 and is scheduled for completion in summer 2022, with the aim of reopening before then in autumn 2021.
“Strong locations and first-class properties like DomAquarée provide the basis for long-term partnerships in the hotel sector,” said Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH. “The hotel has been an integral part of DomAquarée’s successful mixed-use concept since the complex opened in 2004. We’re delighted that we were able to convince our hotel partner to commit to this unique location for an extended period and that this early commitment by our main tenant has further strengthened the attractiveness of the complex for all tenant groups – office, residential, cafés and restaurants, and entertainment – as well as for Berliners and the many visitors to the ensemble.”
Union Investment sees the re-letting to Radisson as an important signal to the hotel industry in Germany, which faces significant economic challenges due to government-imposed closures. “We believe the urban hotel industry will make a strong comeback and we’re therefore investing specifically in top locations like Berlin that are set to benefit most from the return of tourism,” said Martin Schaller.
The DomAquarée CityQuartier complex was developed by Union Investment at the end of the 1990s. With its vibrant mix of uses, DomAquarée set standards and was a defining influence when it opened in 2004, embodying a wider desire to create a sophisticated blend of living, working and leisure while also engaging with the surrounding area. Enjoying a unique location in the heart of downtown Berlin, opposite the Berlin Palace and Humboldt Forum and between Museum Island and the Hackesche Höfe district, the entire complex has benefited from high tourist demand since its opening. The development project was financed by Union Investment’s open-ended real estate fund UniImmo: Deutschland, which still holds the property in its portfolio.
Alongside Berlin, Union Investment’s hotel property portfolio also includes two other Radisson-branded hotels in Amsterdam and Brussels. Union Investment’s hotel real estate portfolio comprises a total of 80 properties across Europe and the USA.
Source : Union Investment Real Estate