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
- 3-star hotel
- Area: 4,145 m2
- Number of rooms: 125
IBIS Kaunas Centre
- 3-star hotel
- Area: 3,314 m2
- Number of rooms: 125
IBIS Styles Kaunas Centre
- 3-star hotel
- Area: 3,113 m2
- Number of rooms: 125
- Number of conference rooms: 4