Union Investment Buys Hotel Project at Copenhagen’s Paper Island
Main Photo: Copenhagen’s Paper Island
Date: August 2022
Name: 25hours Hotel Copenhagen Paper Island – Due to open March 2024
Location: Paper Island, Copenhagen, Denmark
Number of Keys: 128
Seller: A consortium comprising Danica Pension and developers Nordkranen and UnionKul
Buyer: Union Investment on behalf of it’s UniInstitutional European Real Estate fund from the Christiansholms Ø P/S consortium
Union Investment has entered the Scandinavian hotel market with the acquisition of a project in Denmark from a consortium comprising Danica Pension and developers Nordkranen and UnionKul.
Union Investment said it has acquired the 25hours Hotel Copenhagen Paper Island project on behalf of its open-ended UniInstitutional European Real Estate fund from the Christiansholms Ø P/S consortium.
The hotel is part of The Paper Island project, a man-made island situated in a prime city centre location in Copenhagen’s port area. The Paper Island project involves creating a mixed-use neighbourhood that will include the hotel, 253 apartments, retail, gastronomy and event space, as well as the new Water Culture House.
The hotel project has 128 rooms and includes a restaurant, a café and a bar on the top floor and is expected to be completed in March 2024.
Copenhagen is one of Europe’s top hotel markets with high barriers to entry, said Andreas Löcher, the head of investment management hospitality at Union Investment.
“We are therefore delighted to be able to enter the Danish hotel market with the acquisition of this flagship project.”
The hotel will become Accor’s 25hours’ second property in Copenhagen, following the brand’s announcement to debut the brand into the region in 2019.
Florian Kollenz, Chief Development Officer at 25 hours in 2019, is particularly thrilled about the group’s success in Denmark. “The only thing better than one hotel opening in a new city is two openings,” he said in a press statement. “We’re very proud to be working on the new hotel project with CØ P/S.
The island of Christiansholm is also known as Paper Island, because of the giant rolls of paper that were stored there for Danish newspapers. In recent years, the island has developed into an urban destination at the heart of Copenhagen’s harbour district. The Opera House and theatre are located nearby and the area will continue to develop with a new public park and promenade encircling the entire island to open next to the hotel. A new waterfront culture centre is also planned, which will highlight the great importance of water in Copenhagen’s history.
“We look forward to the collaboration with 25hours Hotels on Paper Island. The team around Christoph Hoffmann has a very professional, and at the same time has an untraditional approach, which we fell in love with at our first encounter. We are confident that 25hours will be welcomed not only by future guests, but also by all the inhabitants of Paper Island,” says Klaus Kastberg, CEO in Unionkul Ejendome, on behalf of Udviklingsselskabet CØ P/S.
COBE, Danish architecture experts, spearheaded hotel project and 25hours turned to Stylt Trampoli from Gothenburg for the interior design. The 25hours Hotel Das Tour in Düsseldorf was also designed alongside the Swedish team in 2018.
Price: Undisclosed
THPT Comment: This acquisition marks 85 hotels owned by Union Investment, with some 20,000 keys…under 42 international hotel brands…not bad for a fund started in just 2013!
First Seen: Property EU
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