Complete remodelling of Steigenberger Hotel Hamburg - Owner invests EUR 50 million in refurbishment
construction of new presidential suite and rooftop bar / Lease extended by 25 years
Never change a winning team: Union Investment, the owner of the property, and Steigenberger Hotels AG have extended the lease for the hotel on Hamburg’s Fleetinsel for another 25 years. The two parties have also agreed to carry out a comprehensive refurbishment of the hotel, which was built in 1992. Beginning with the underground garage and followed by the 8th floor, the hotel will be gradually updated, remaining open during refurbishment. The works are scheduled to start in spring 2019. Union Investment is investing around EUR 50 million in the upgrading programme.
“Our guests are accustomed to first-class service. This remodelling of the Steigenberger Hotel Hamburg will enable us to continue meeting their expectations,” said Thomas Willms, CEO, Deutsche Hospitality. “A rooftop bar, presidential suite, new dining concept and the transformation of the property into a smart building all underline our commitment to being one of the leading hotels in the city."
“By carrying out this comprehensive modernisation programme, we are ensuring that the hotel on Fleetinsel is well positioned for the future. We are delighted to have agreed a range of forward-looking solutions with our partner Steigenberger,” said Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH. “The makeover will enable the hotel to leverage the benefits of its exceptional location to even greater effect, thus securing valuable returns for the private investors in UniImmo: Europa.”
In addition to remodelling and refurbishment works covering all the rooms and public areas, the plans include constructing a new presidential suite and a rooftop bar. The bar will have unrestricted views of the landmark St Michael’s Church and Elbphilharmonie concert hall. A new dining concept is also planned for the ground floor. Intelligent control technology will transform the Steigenberger Hotel Hamburg into a smart building. Because the upgrading work will be carried out in stages without closing the hotel, Union Investment estimates that the entire building project will take around two years to complete.
The hotel has been held in open-ended real estate fund Unilmmo: Europa since 1996. Following the signing of the new contract, the Steigenberger Hotel Hamburg has become one of the first properties in Union Investment’s German hotel portfolio to have a green lease and adopt the sustainability recommendations of the German Property Federation (ZIA).
ABOUT STeigenberger Hotels and Resorts
Steigenberger Hotels and Resorts is a Deutsche Hospitality brand. It represents the epitome of luxury and perfect hospitality. Visitors can choose from historic hotels rich in tradition, lively city residences and health and beauty oases at the very heart of nature. The portfolio includes 60 hotels in eleven countries in Europe, Asia and Africa. Deutsche Hospitality operates four further brands. MAXX by Steigenberger is a new and charismatic concept which places the focus on the essential in accordance with its motto “MAXXimize your stay”. Jaz in the City branded hotels reflect metropolitan lifestyle and draw upon the local music and cultural scene. IntercityHotel offers 40 upper modern upper mid-scale urban hotels, all of which are located within easy walking distance of railway stations or airports, whilst Zleep Hotels provide quality and design at an affordable price in Denmark and Sweden.
ABOUT UNION INVESTMENT
Union Investment stands for forward-looking real estate investment worldwide. We provide private and institutional property investors with a comprehensive investment platform. Union Investment currently has assets under management totalling around EUR 40 billion in its open-ended retail real estate funds, special funds and via service and pooling mandates. We invest in the office, retail, hotel, logistics and residential sectors and hold some 400 properties across 23 countries in our actively managed portfolio. In Hamburg, Union Investment holds 10 hotel properties worth a total of around EUR 500 million in its actively managed real estate funds. Worldwide, the figure is 75 hotel properties across 9 countries.