US: Union Investment has secured two operators for its hotels in New York City and Portland, both of which are held by Unilmmo: Global.
Motel One has signed a 20-year lease for the hotel in New York City, marking the chain’s entry into the US market. The property is located in downtown Manhattan.
Since 2016, the hotel has been operated under the Courtyard by Marriott brand. Union Investment terminated its agreement with the previous operator prematurely. Motel One will carry out a refurbishment and rebranding before the hotel reopens.
Martin Schaller, head of asset management hospitality at Union Investment, said: “As Motel One’s biggest landlord, we are delighted to have the opportunity to extend our longstanding strategic relationship outside Europe as well. We’re looking forward to jointly bringing this successful lifestyle concept to the local market and travellers from all over the world in the heart of New York very soon.”
Oxford Capital Group LLC will take over as tenant and manager of The Porter hotel in Portland. The property will continue to form part of Curio Collection by Hilton, and is due to be handed over in July.
Both operators of the two properties fell under pressure as a result of the pandemic and were no longer able to meet their lease obligations. The operator of The Porter had to pull out for financial reasons.
Schallerr added: “In this challenging market environment, we’re pleased to have found solutions that secure a viable future for these hotels. We have achieved this by teaming with strong hotel partners with whom we have worked closely for many years. The follow-on leases were agreed quickly, underlining just how attractive these two properties and their locations are.
“The toughest part of the journey is now behind us,” he continued. “The US hotel market is already staging a comeback and hoteliers are anticipating a surge in demand. With Motel One and Oxford as operators, our hotels in New York City and Portland are extremely well positioned to benefit from the expected turnaround.”
Union Investment was advised by DLA Piper, Hogan Lovells and Mayer Brown.