A Hyatt Place hotel, located at the Frankfurt Airport in Germany, is scheduled to open in the first quarter of 2018.
Union Investment acquired the approximately 3,006 sqm hotel site from seller, developer and lessee Europahotel Baufeld, which is part of the Feuring Group, via a forward purchase arrangement.
The completed hotel will be purchased by Union Investment for its open-ended retail real estate fund Unilmmo: Global.
The Feuring Group will then operate the hotel under a lease for the next 30 years under the Hyatt Place brand.
The parties agreed not to disclose financial details of the transaction.
Hyatt Place Frankfurt Airport will be part of the new Gateway Gardens business quarter in walking distance to Frankfurt Airport.
A new suburban rail station to serve Gateway Gardens is currently under construction, the exit of which will be directly outside the hotel.
The line will connect to the airport in two minutes and to Frankfurt city centre in ten minutes.
With the Frankfurter Kreuz motorway intersection situated in the immediate vicinity, the Hyatt Place hotel will also be easily accessible by car.
Construction of the 312-room hotel with approximately 19,350 sqm of leased space is due to commence in the second quarter of 2016.
Around 110 underground parking spaces are also planned.
“The Hyatt Place Frankfurt Airport deal sees us exploiting an opportunity to acquire a hotel project in the established Gateway Gardens location.
“The anticipated growth in passenger numbers and associated overnight stays will benefit not only the Hyatt Place hotel but also the wider district,” said Andreas Löcher, head of investment management hotels at Union Investment Real Estate.