Frankfurt, 28 February 2019
Never change a winning team: Union Investment, the owner of the property, and Steigenberger Hotels AG have extended the lease for the hotel on Hamburg’s Fleetinsel for another 25 years. The two parties have also agreed to carry out a comprehensive refurbishment of the hotel, which was built in 1992. Beginning with the underground garage and followed by the 8th floor, the hotel will be gradually updated, remaining open during refurbishment. The works are scheduled to start in spring 2019. Union Investment is investing around EUR 50 million in the upgrading programme.
“Our guests are accustomed to first-class service. This remodelling of the Steigenberger Hotel Hamburg will enable us to continue meeting their expectations,” said Thomas Willms, CEO, Deutsche Hospitality. “A rooftop bar, presidential suite, new dining concept and the transformation of the property into a smart building all underline our commitment to being one of the leading hotels in the city.”
“By carrying out this comprehensive modernisation programme, we are ensuring that the hotel on Fleetinsel is well positioned for the future. We are delighted to have agreed a range of forward-looking solutions with our partner Steigenberger,” said Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH. “The makeover will enable the hotel to leverage the benefits of its exceptional location to even greater effect, thus securing valuable returns for the private investors in UniImmo: Europa.”
In addition to remodelling and refurbishment works covering all the rooms and public areas, the plans include constructing a new presidential suite and a rooftop bar. The bar will have unrestricted views of the landmark St Michael’s Church and Elbphilharmonie concert hall. A new dining concept is also planned for the ground floor. Intelligent control technology will transform the Steigenberger Hotel Hamburg into a smart building. Because the upgrading work will be carried out in stages without closing the hotel, Union Investment estimates that the entire building project will take around two years to complete.
The hotel has been held in open-ended real estate fund Unilmmo: Europa since 1996. Following the signing of the new contract, the Steigenberger Hotel Hamburg has become one of the first properties in Union Investment’s German hotel portfolio to have a green lease and adopt the sustainability recommendations of the German Property Federation (ZIA).