The German investment fund announces the acquisition of 25hours Copenhagen.
The 128-room property will feature a café, restaurant and rooftop bar as well as three conference rooms with a maximum capacity of 120 people. The hotel will be delivered in March 2024 and is part of a large-scale real estate programme in the Danish capital to redevelop the 45,000 m² historic Paper Island. Having served as the country's paper industry hub, the site had become less used for industry and was transformed into a meeting and leisure space where bars, restaurants and foodcourts rubbed shoulders, making the destination the third busiest place in the city. The island also hosted events and concerts.
However, the age of the buildings made it a space that was not very energy efficient. A call for projects was therefore launched by the local authority and won by Cobe in 2016. The project, inspired by the original industrial architecture, will also bring together housing, shops, restaurants and leisure areas and the Water Culture House, which will have an educational and cultural vocation around the theme of water.
Union Investment is acquiring its first hotel property in Scandinavia, as the investor is already present in Austria, Belgium, Spain, France, the Netherlands, Poland and the United Kingdom with 24 hotels. It is already leased to KNSA Germany for 25 years and will be managed by Ennismore.
Andreas Löcher, head of Investment Management Hospitality at Union Investment, said: Copenhagen is one of the best hotel markets in Europe, with high entry tickets. We are therefore delighted to enter the Danish hotel market with the acquisition of this flagship project. It will appeal to both business and leisure travellers with its unique place in a newly developed city centre area, close to many tourist attractions. Paper Island will provide a high quality visitor experience and is expected to attract up to 1.9 million visitors per year.
Union Investment Group
Investor / Finance