Union Investment has acquired two new, big-name operators for its hotels in New York City and Portland, both of which are held by UniImmo: Global. Motel One has signed a 20-year lease for the hotel in New York City. In Portland, Oxford Capital Group, LLC will take over as tenant and manager of The Porter hotel. The hotel will continue to form part of the Curio Collection by Hilton. The hotel in New York City has already been handed over to Motel One, and the hotel in Portland is also due to be handed over in July. .
“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,” said Martin Schaller, head of Asset Management Hospitality at Union Investment. The previous operators of the two hotels came under pressure as the pandemic unfolded and were no longer able to meet their lease obligations. The operator of The Porter had to pull out of the hotel for financial reasons.
“The toughest part of the journey is now behind us. 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,” said Martin Schaller.
Motel One’s lease with Union Investment in New York City marks the chain’s entry into the US market. The German hotel group is scheduled to take over the hotel on 21 July. The property is located in downtown Manhattan, close to the World Trade Center complex, and has been operated under the Courtyard by Marriott brand since 2016. Motel One will carry out extensive refurbishment and rebranding. The agreement with the previous operator was terminated prematurely by Union Investment. Motel One already operates lifestyle budget hotels in eight properties held by Union Investment across four funds. “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,” said Martin Schaller.
Union Investment was advised by DLA Piper (Chicago and Washington DC), by Hogan Lovells (Munich) and by Mayer Brown (Chicago).
Source : Union Investment Real Estate