A Hyatt Place hotel, located at the Frankfurt Airport in Germany, is scheduled to open in the first quarter of 2018. Union Investment acquired the approximately 32,350 square foot hotel site from seller, developer and lessee Europahotel Baufeld 11.3 GmbH & Co KG., which is part of the Feuring Group, via a forward purchase arrangement. The transaction was formally agreed on March 14, 2016. The completed hotel will be purchased by Union Investment for its open-ended retail real estate fund Unilmmo: Global. The Feuring Group will then operate the hotel under a lease for the next 30 years under the Hyatt Place brand. The parties agreed not to disclose financial details of the transaction.
Hyatt Place Frankfurt Airport will be part of the new Gateway Gardens business quarter in walking distance to Frankfurt Airport. A new suburban rail station to serve Gateway Gardens is currently under construction, the exit of which will be directly outside the hotel. The line will connect to the airport in two minutes and to Frankfurt city center in 10 minutes. With the Frankfurter Kreuz motorway intersection situated in the immediate vicinity, the Hyatt Place hotel will also be easily accessible by car. About 5,000 people are already employed by the companies located at Gateway Gardens. LSG Sky Chefs, DB Schenker and Condor all have offices close to the future Hyatt Place hotel.
Construction of the 312-room hotel with approximately 208,280 square feet of leased space is due to commence in the second quarter of 2016. Around 110 underground parking spaces are also planned. “The Hyatt Place Frankfurt Airport deal sees us exploiting an opportunity to acquire a hotel project in the established Gateway Gardens location. The anticipated growth in passenger numbers and associated overnight stays will benefit not only the Hyatt Place hotel but also the wider district,” said Andreas Löcher, head of Investment Management Hotels at Union Investment Real Estate GmbH. Reflecting a commitment to sustainable real estate development, the hotel will qualify for a LEED silver rating.
“Hyatt Place Frankfurt is an exciting development as the Hyatt Place brand continues to expand throughout Europe,” said Peter Norman, senior vice president, acquisitions and development for Hyatt – Europe, Africa, and Middle East. “After listening to the needs of the modern traveler, the Hyatt Place brand launched to offer casual hospitality in smartly designed, high-tech hotels that operate 24/7. We look forward to introducing the Hyatt Place brand to Germany, where guests will enjoy the brand’s industry leading select-service experience.“
The Hyatt Place brand is known for its appeal to both business and leisure travelers. The hotels are designed in response to what the modern traveler prioritizes, featuring intuitive design, casual atmosphere and practical amenities. Catering to the 24/7 traveler, Hyatt Place Frankfurt will deliver seamless experiences and will offer the services guests want, whenever they need them. Rooms will range from 269 square feet to 344 square feet in size and incorporate “Cozy Corners”, making it possible to accommodate up to four people. The hotel will feature a 24/7 Gallery Menu and Market allowing guests to grab food at any time, as well as the 24-hour StayFit gym featuring cardio equipment and LCD touchscreens. In addition, the hotel will be ideally located directly next to the Gateway Gardens park.
Gateway Gardens comprises a projected 7.5 million square feet area across an 86-acre site, making it one of the largest developments in an airport city anywhere in Europe. In October 2014, Gateway Gardens became the first commercial district to receive DGNB gold certification for sustainability. This year, more than 40% of Gateway Gardens is expected to be fully marketed.
About Union Investment
Union Investment is a leading international investment manager specializing in open-ended real estate funds for private and institutional investors. Union Investment has assets under management of some 31 billion EUR in twenty real estate funds. The portfolio of Union Investment´s open-ended real estate funds comprise some 320 properties and projects in Germany and other European Countries, the Americas and Asia. The company operates today in 24 countries around the world, with approximately 60% of property assets located in countries outside the domestic market. In 2015, Union Investment handled a record transaction volume of approximately EUR 5 billion, spread across 66 deals. For more information, please check in at www.union-investment.com/realestate.
About Hyatt Place
Hyatt Place, a brand of Hyatt Hotels Corporation, combines style, innovation and 24/7 convenience to create a seamless stay with modern comforts. There are more than 240 Hyatt Place locations in the United States, Armenia, Chile, China, Costa Rica, Honduras, India, Mexico, Morocco, Nicaragua, Panama, Puerto Rico, The Netherlands, and United Arab Emirates. To learn more about Hyatt Place hotels or to make a reservation, visit www.hyattplace.com or call 1-888-HYATT-HP (888-492-8847).
Feuring - Visionary Hotel Development was established in Mainz, Germany in 1959. Besides its own hotel development activity the company accompanies clients from the first idea for a hotel project to its operation, advises for concepts and choice of operator, develops feasibility studies and area programs and accompanies clients during the project development until the turn-key handover. Up until now, Feuring has either developed or has been engaged in the successful development of more than 400 first class and luxury hotels at home and abroad on behalf of many investors and hotel chains.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company's subsidiaries develop, own, operate, manage, franchise, license or provide services to hotels, resorts, branded residences and vacation ownership properties, including under the Park Hyatt®, Grand Hyatt®, Andaz®, Hyatt Regency®, Hyatt Centric™, Hyatt®, Hyatt Place®, Hyatt House®, Hyatt Ziva™, Hyatt Zilara™, Hyatt Residence Club®, Hyatt Residences® and The Unbound Collection by Hyatt™ brand names and have locations on six continents. As of December 31, 2015, the Company's worldwide portfolio consisted of 638 properties in 52 countries. For more information, please visit www.hyatt.com.
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the rate and pace of economic recovery following economic downturns; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; if our third-party owners, franchisees or development partners are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Union Investment Real Estate GmbH
Head of Real Estate Marketing, Communication
Segment Management Department
Union Investment Real Estate GmbH
Valentinskamp 70 / EMPORIO
20355 Hamburg, Germany
Tel: + 49 40 3491 94160, fax: + 49 40 3491 95160
Press Spokesperson for Gateway Gardens
(c/o DAFKO Deutsche Agentur für Kommunikation)
Feuring Hotelconsulting GmbH
Director Advisory Services
An der Karlsschanze 8