Union Investment secures Hyatt Place hotel in Gateway Gardens at Frankfurt Airport from Feuring GroupA 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 3,006 sq m 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 14 March 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 centre 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 19,350 sq m 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 through 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 traveller, 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 travellers. The hotels are designed in response to what the modern traveller prioritises, featuring intuitive design, casual atmosphere and practical amenities. Catering to the 24/7 traveller, Hyatt Place Frankfurt will deliver seamless experiences and will offer the services guests want, whenever they need them. Rooms will range from 25 sq m to 32 sq m 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 700,000 sq m of gross floor area across a 35-hectare 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.