UNION Hospitality Investment Fund

About

Investments in the commercial real estate sector of hospitality.

The hotel market in the Baltic and Central and Eastern European countries is experiencing rapid recovery after COVID – visitor flows, occupancy rates, and average daily indicators are increasing. The number of visitors has reached the level of 2019.

Over the long term, office and logistics property yield levels in the Baltic countries have outperformed European declining trends, while the hospitality sector still has room for yield contraction as it is not yet a focus of much investor attention.

Why UNION Hospitality Investment Fund?

Opportunity

The hotel sector is rapidly recovering after the crisis, but hotel acquisition prices remain at the same level as in 2018-2019. This creates excellent opportunities to acquire real estate in attractive locations.

Risk management

Investing in a diversified portfolio of 10 hotels and other hospitality sector assets in different cities and countries. Additional guarantees from hotel operators for business continuity.

Inflation protection

Stable rental income and indexing based on the relevant consumer price index (CPI) coefficient, thus eliminating inflation risk and ensuring a steady cash flow from the investment.

Asset class

The current price per square meter of hospitality sector properties provides a unique opportunity to purchase real estate in prime locations at a discount.

Active management

The fund collaborates with an experienced hotel operator with years of experience in improving income streams and increasing the efficiency of managed assets.

Attractive returns

Investing in real estate properties offers the opportunity to earn a stable average annual investment return.

Fund parameters

Type and form

Closed-end AIF for informed investors.

Strategy

Investing in the acquisition and management of rental income-generating hospitality real estate, properties suitable for restructuring in the hospitality sector.

Region

Baltic countries, Central and Eastern Europe, European Economic Area.

Start date

June 6, 2023

Duration

6 years with the option to extend for 2 periods of 2 years each (6+2+2).

Planned size

100 million EUR.

Assets under management

Managed area

10 573 m²

Number of rooms

332

IBIS Riga Centre

Ibis Riga
  • 3-star hotel
  • Area: 4,145 m2
  • Number of rooms: 125

IBIS Kaunas Centre

Ibis Kaunas Centre
  • 3-star hotel
  • Area: 3,314 m2
  • Number of rooms: 125

IBIS Styles Kaunas Centre

Ibis Kaunas Styles
  • 3-star hotel
  • Area: 3,113 m2
  • Number of rooms: 125
  • Number of conference rooms: 4
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