InterContinental Berlin
Union Investment and IHG invest EUR 60 million in modernising InterContinental® Berlin
The announcement coincides with the International Hotel Investment Forum (IHIF) in Berlin, Europe's most important hotel investment conference. The upgrade of the 558 luxurious guest rooms and the beautifully designed public areas of the hotel will cost around EUR 60 million. The hotel will remain open during the works, which will be managed to ensure a continued high level of hospitality and uninterrupted guest services.
Union Investment and IHG invest EUR 60 million in modernising InterContinental
Photo by IHG
The renovation will take place in several phases while making sure that guests will be able to enjoy their usual pleasant experience at InterContinental Berlin. The strategic development of the hotel is expected to begin in May 2019 with the renovation of the large ballroom, with complete refurbishment of the guest rooms in the south and east wings of the hotel scheduled to start towards the end of the year. Work on the west wing will follow once these areas are completed. The lobby and reception space will also be refurbished while retaining their high-quality standards.
First opened in 1958, InterContinental Berlin is one of the most established and internationally renowned hotels in the German capital and has been upgraded several times during its history. Given Union Investment's extension to the hotel's lease with IHG to a term of 30 years, there is no question that one of Germany's top revenue-generating hotels will remain a long-term fixture close to famous Berlin Zoo. These measures will secure the presence of InterContinental® Hotels & Resorts in Berlin for decades to come, ensuring that this important icon in Berlin remains the favourite choice for guests looking for a luxurious and distinguished hotel experience.
InterContinental Berlin has been part of the portfolio of UniImmo: Deutschland, one of Union Investment's open-ended real estate funds, since 2000. From a fund perspective, the planned refurbishment is intended to bolster the hotel's profitability and protect the long-term value of the building. The 70,000 sq m InterContinental Berlin currently has a market value of around EUR 185 million.
A team from Hogan Lovells, led by Marc Werner, assisted Union Investment in the project. IHG was assisted by a team from DLA Piper headed by Dr Martin Haller.