Union Investment has sold the “Hilton Garden Inn” hotel in Innsbruck, which was held in the portfolio of immofonds 1, to Schiehser Hotels, the current operator of the property. The acquirer will continue hotel operations under the “Hilton Garden Inn” brand long-term.
The property had been part of the open-ended real estate public fund immofonds 1, which is exclusively distributed in Austria, since 2015. The building was completed in 2011. Until July 2021, it was operated as a Ramada Hotel, before being acquired by HR Group, now Revo Hospitality, in 2022 and temporarily run as Tivolihotel Innsbruck. At the end of 2024, it was rebranded as a “Hilton Garden Inn”, accompanied by an investment of approximately 4 million EUR by Union Investment for modernisation and adaptation to Hilton’s quality standards. Schiehser Hotels took over operational management of the establishment at the beginning of the year and will now continue this as the owner. Details of the exact purchase price were not disclosed publicly.
André Pinto Gomes, Senior Investment Manager Hospitality at Union Investment, highlighted that Innsbruck represents an attractive market for operators and investors due to stable demand and a limited development pipeline. With 159 rooms, the property has an appealing size. This provided Union Investment with the opportunity to profitably sell the asset to the current operator.
Petia Zeiringer, Fund Manager and Board Member of Union Investment Real Estate Austria AG, added that the hotel’s market value had increased by approximately 20 percent during the eleven-year holding period. This contributed positively to the fund’s performance. The sale was carried out for portfolio-strategic reasons and serves to increase the liquidity position of immofonds 1.
The “Hilton Garden Inn” is situated in an architecturally appealing building south of Innsbruck’s old town. Its location is characterised by its direct proximity to Olympia World, the Olympic Ice Stadium and the Tivoli Football Stadium. The airport, the main railway station, and the city centre are all quickly accessible from this location.
Union Investment was advised on this transaction by Christie&Co, Vavrosky Heine Marth Rechtsanwälte GmbH, and TPA.
