Radisson to reposition Berlin hotel, lease extended until 2040

Germany: Radisson Hotel Group has signed a 20-year lease with Union Investment for the Radisson Blu Hotel in the DomAquarée CityQuartier complex, and will rebrand the property under Radisson Collection.

The extension of the lease, which was set to expire at the end of 2024, was agreed in December. 

As part of the agreement, owner Union Investment is to contribute around €20 million to the modernisation and maintenance work of the hotel, which will include a redesign of all 427 rooms, suites and bathrooms, as well as the lobby, bar and conference areas. The roof and structure is also set be touched up.

Work began in November 2020 and is scheduled for completion in summer 2022. The hotel is however set to reopen before this date in autumn 2021.

Radisson expects the repositioning under the Radisson Collection to attract Asian guests. The project marks the first Radisson Collection hotel in Germany and the second hotel with this branding in the Unilmmo: Deutschland fund, after the Radisson Collection Brussels.

Martin Schaller, head of asset management hospitality at Union Investment Real Estate GmbH, said: “Strong locations and first-class properties like DomAquarée provide the basis for long-term partnerships in the hotel sector. 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.

“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,” he added.

The DomAquarée CityQuartier complex was developed by Union Investment at the end of the 1990s. 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 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.

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