Union Investment and Scandic Hotels Group have concluded a long-term lease agreement for a hotel property in Frankfurt am Main. The building, located in the immediate vicinity of Frankfurt Fair and Skyline Plaza, which has been part of Union Investment's open-ended real estate fund UniInstitutional European Real Estate since 2008, was managed by Mövenpick until the end of June 2026.
The agreement provides for an extensive repositioning of the hotel. Scandic's brand and operational standards will be implemented. The reopening is planned for 2027. The measures include a modernisation of the rooms, a redesign of the interior with a focus on contemporary design, and the selection of sustainable materials. The aim is a significant improvement of the guest experience.
Property Details and Strategic Implications
After a planned densification within the existing structure, the hotel will feature 296 rooms. Furthermore, an all-day dining restaurant and bar area, an outdoor terrace of 100 square metres, and event and exhibition spaces on the ground floor are planned. These five multifunctional rooms offer a total area of 500 square metres and are designed for conferences.
Henrike Waldburg, Managing Director of Union Investment Real Estate GmbH, expressed a positive view on the expansion of the collaboration with Scandic in Germany. An established cooperation already exists in Hamburg, where the Scandic Hamburg Emporio, opened in 2012, is also part of Union Investment's hotel portfolio. This hotel also marked Scandic's initial market entry into Germany.
Jens Mathiesen, President and CEO of Scandic Hotels Group, underlined the significance of this expansion. The third hotel in Frankfurt will strengthen its presence in one of Europe's leading financial metropolises. Frankfurt is characterised by continuous business activity and a high volume of visitors. Jesper Engman, Chief Development Officer at Scandic Hotels Group, additionally highlighted the strategic location, strong business demand, and future transport links, which will secure the competitiveness of the new hotel in the centre of Frankfurt.
