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INNSBRUCK

Union Investment and HR Group turn the Ramada Hotel in Innsbruck into a Hilton Garden Inn: day pass

Sugar Mizzy December 3, 2021

With a brand change and a simultaneous modernization, the former Hotel Ramada Innsbruck Tivoli will be repositioned and significantly upgraded on the Innsbruck hotel market. Union Investment has signed a 30-year lease with the German hotel operator HR Group for the hotel, which has been vacant since July 31, after the lease with the previous tenant expired.

The hotel is expected to open on December 15th – in a transitional phase as an independent hotel – and will then be comprehensively modernized during ongoing operations. Once the renovation work has been completed, the hotel will then be positioned in the market under the Hilton Garden Inn Innsbruck brand. Hilton enters into a franchise agreement with the HR Group for the hotel.

The architecturally striking property has been part of the portfolio of the open-ended real estate fund immofonds 1, which is sold exclusively in Austria, since 2015. Union Investment and Hilton are jointly investing around 4 million euros in upgrading the hotel from midscale to upscale.

As part of the renovation work, which should be completed within the next 12 to 24 months, all 159 rooms and bathrooms as well as corridors, public areas such as the lobby, restaurant, bar and the wellness and conference areas will be upgraded and the standard of equipment of the hotel will be increased significantly.

“We are delighted to be able to further develop the strategic partnership with Hilton and the HR Group with the successful follow-up letting and to have found the perfect brand for the Innsbruck location and our property,” says Martin Schaller, Head of Asset Management Hospitality at Union Investment. “The addition of the brand to the Hilton Garden Inn means that the hotel is connected to strong distribution channels and thus ensures the sustainable profitability and future viability of the property.”

“The conclusion of the contract confirms our solid partnership with Union Investment. The new addition to the portfolio also marks the entry into the Austrian hotel market and the first hotel under a Hilton brand for the HR Group, ”says Markus Lewe, Managing Director and Chief Executive Officer, Lodging Division of the HR Group. “This is a milestone for the company and we look forward to achieving it with such a promising project and competent partners.”

Last year, the HR Group had already taken over the management of the Pullman Schweizerhof Berlin from Union Investment’s hotel portfolio. The HR Group is also the hotel manager for two other Union Investment hotels in Frankfurt and Eschborn.

The US hotel chain Hilton currently operates around 900 hotels worldwide under the Hilton Garden Inn brand. Union Investment already has a hotel in Seattle under the Hilton Garden Inn brand. Union Investment will support the further expansion of Hilton with its real estate and strong business and leisure locations in Europe and America.


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