As part of a rebranding and extensive refurbishment programme, the former Hotel Ramada Innsbruck Tivoli is being significantly upgraded and repositioned in the Innsbruck hotel market. Union Investment has signed a long-term lease for 30 years with German hotel operating company HR Group. The hotel has been vacant since 31 July following expiry of the lease with the former tenant.
The hotel is expected to open on 15 December – in a transitional phase as an independent hotel – and will then be fully refurbished during ongoing operation. Once the refurbishment work has been completed, the hotel will be positioned in the market under the Hilton Garden Inn Innsbruck brand. Hilton will enter into a franchise agreement with the HR Group for the hotel.
The architecturally striking property has been held by open-ended real estate fund immofonds 1 since 2015. The fund is marketed solely in Austria. Union Investment and Hilton are jointly investing around EUR 4 million in upgrading the hotel from midscale to upscale.
The refurbishment work is due to be completed over the next 12 to 24 months. All 159 guest rooms and bathrooms will be upgraded, as will the corridors, public areas such as the lobby, restaurant and bar, and also the wellness and conference facilities. The standard of fittings and furnishings in the hotel will be significantly improved overall.
“Signing this follow-on lease gives us the opportunity to expand our strategic partnership with Hilton and the HR Group. We’re delighted to have found a brand that is a perfect fit with Innsbruck and our property,” said Martin Schaller, head of Asset Management Hospitality at Union Investment. “Rebranding the hotel as a Hilton Garden Inn provides access to strong distribution channels, thus ensuring sustained returns and the future viability of the property.”
Hilton currently operates more than 900 hotels under the Hilton Garden Inn brand around the world. Union Investment is already active in Seattle with a Hilton Garden Inn branded hotel. Union Investment is aiming to support the further expansion of Hilton through its properties in strong business and leisure locations in Europe and America.
Source : Union Investment Real Estate