Union Investment has sold the "Hilton Garden Inn" hotel in Innsbruck to the current operator Schiehser Hotels. The buyer will continue to operate the hotel under the "Hilton Garden Inn" brand in the future. The specific purchase price was not disclosed.
Since 2015, the hotel has been part of the portfolio of the open-ended real estate fund immofonds 1, which is sold exclusively in Austria. Completed in 2011, the building was operated as the Ramada Hotel until July 2021, before it was taken over by the HR Group, now Revo Hospitality, in 2022 and temporarily managed as the Tivolihotel Innsbruck. Since the end of 2024, it has been operated under the "Hilton Garden Inn" brand, after Union Investment invested around 4 million euros to modernize the hotel and bring it up to the higher standard of the Hilton brand. Schiehser Hotels took over the operation of the hotel at the beginning of the year and is now continuing it as the owner for the long term.
"Innsbruck is an attractive market for operators and investors due to stable demand and limited project pipeline. The hotel also has a very attractive size of 159 rooms. We have therefore taken advantage of the current opportunity to sell it profitably to the current operator," says André Pinto Gomes, Senior Investment Manager Hospitality at Union Investment.
"During the 11-year holding period, the hotel has increased its market value by around 20 percent and made a positive contribution to the fund's performance. The sale is being carried out for portfolio strategic reasons and increases the liquidity position in immofonds 1," says Petia Zeiringer, fund manager and member of the Management Board of Union Investment Real Estate Austria AG.
The Hilton Garden Inn is located in a building with exceptional architecture south of Innsbruck's Old Town, directly opposite Olympia World. The Olympic Ice Stadium and the Tivoli Football Stadium are also just a few steps away. The airport, the train station and the city centre with numerous attractions can be reached within a few minutes.
Union Investment was advised by the real estate service provider Christie&Co as well as Vavrosky Heine Marth Rechtsanwälte GmbH and TPA.
