Union Investment is completely revamping a 6,200 sq m hotel property on Gendarmenmarkt square in Berlin, thereby highlighting its commitment to this sought-after hotel location. The former Sofitel Berlin Gendarmenmarkt will be transformed into a new boutique hotel with the name Luc. The remodelling is planned to be completed by spring 2020. Munich Hotel Partners GmbH (MHP) will take over as franchisee and tenant, operating the hotel under the fast-growing Autograph Collection Hotels brand owned by Marriott International. The lease for the Sofitel Berlin Gendarmenmarkt expired on 31 August 2019. As part of the change of operator, several million euros will be invested in the modernisation of the hotel property. The hotel property, which was built in 1981 and fully refurbished in 1999, has been held in special fund DEFO Immobilienfonds 1 since 1997.

“The strategic fit of hotel brand, concept and hotel asset was the deciding factor for us and our partners,” said Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH. “By giving the hotel on Gendarmenmarkt square a new brand identity, we are demonstrating for the first time in our hotel portfolio that a change of operator and brand can further sharpen the positioning of the hotel while opening up exciting new options for the property.” After completion of the renovation work, the new Boutique Hotel Luc will present itself with newly designed rooms based on the new design concept.

“We are delighted to be able to extend our partnership with Union Investment and Marriott to the Berlin hotel market,” said MHP managing director Dr Jörg Frehse. “For us, Gendarmenmarkt is more than just the most beautiful square in Berlin. We also see the potential to offer visitors an insight into the history of this location. Our aim is to translate the local heritage into a contemporary hotel experience.”

The Autograph Collection Hotels brand celebrates individuality by offering one-of-a-kind travel experiences at its hotels. The hotels are selected for their distinctive character, exceptional design and specific connection to the local surroundings. The portfolio features over 170 luxury, hand-picked lifestyle hotels around the world.

The new Luc boutique hotel will be inspired by the Prussian history of Gendarmenmarkt square. Here, where the Friedrichstadt district was built on geometric lines and the ideals of openness and rigour are still apparent today, a previously unseen side of Prussia will be revealed behind the austere façade – one characterised by wit and playful parody. These qualities are reflected in the name “Luc”, which was the nickname used by the French philosopher Voltaire for his friend and patron Frederick II of Prussia.

“Boutique hotels account for just three per cent of the Berlin hotel market and there is clearly scope to increase that share. The new Luc hotel is a major step in that direction. As the owner of the property, we believe that distinctive design combined with Marriott’s strong market presence creates a stable foundation on which to take the hotel property forward in Berlin’s diverse market environment,” explained Schaller.