Union Investment acquires lifestyle hotel

Amy Horsfield By Amy Horsfield
07 January 2019 | Updated 07 January 2019

US: Union Investment has agreed to acquire a Thompson-branded lifestyle hotel development in Washington D.C.

Following hotel acquisitions in Boston, Chicago, New York and Seattle, Washington D.C. is now the fifth hotel investment location in the US chosen by Union Investment. The new Thompson hotel will be located at the intersection of 3rd Street and Tingey Street. Navy Yard is a former shipyard on the Anacostia River and is currently being transformed into a vibrant new neighbourhood comprising a wide range of uses.

Andreas Löcher, head of Investment Management Hospitality at Union Investment Real Estate GmbH, said: "Washington's Navy Yard is already being seen as a magnet for trendsetters, with strong appeal for residential, office, retail and restaurant uses. The Thompson lifestyle brand is an excellent fit with this location and also with our existing hotel portfolio."

The Hotel will be leased to a Joint Venture of Geolo Capital, the San Francisco-based private equity investment arm of the John A. Pritzker Family Office; and JW Capital Partners which is a Boston-based real estate investment group.

The new Thompson hotel will offer 225 rooms, including 38 suites. Alongside the hotel rooms, there will be a lobby lounge, a signature restaurant on the ground floor and a rooftop bar with inside and outside space. A fitness center as well as 800 sq m of conference space will complete the offering. Thompson is among the successful boutique hotel brands in the luxury category that are proving popular the world over and experiencing rapid growth. To date, some ten hotels in the US and Mexico operate under the Thompson brand.

Andreas Löcher said: "We carefully monitor the emergence of young hotel brands and innovative accommodation trends globally. We are happy to invest in such concepts if we are convinced of their long-term viability, as is the case with Thompson, and our strict acquisition criteria as a conservative investment manager are met."

Union Investment currently holds 66 hotel properties across 9 national markets in its actively managed funds. The hotel portfolio is worth a total of EUR 3,9 billion, with further expansion of the US segment of the portfolio being a strategic priority.

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