Union Investment and IHG to Invest 60 Million Euro to Modernize InterContinental® Berlin

United Kingdom, Denham. March 26, 2019

IHG® (InterContinental Hotels Group) and Union Investment have announced plans to modernise InterContinental Berlin, which is owned by Union Investment and operated by IHG.

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.

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.

Martin Schaller, Head of Asset Management Hospitality at Union Investment Real Estate GmbH, who will oversee the upgrading work together with his team, said: "InterContinental Berlin is one of the largest and most prominent hotels in our portfolio. By upgrading the property and agreeing early renewal of the lease, we are making sure the hotel is staying ahead in the diverse Berlin hotel market. We are absolutely delighted that together with IHG, we have been able to develop a joint concept for the future of this outstanding hotel."

Karin Sheppard, Managing Director Europe, IHG, commented: "InterContinental Hotels & Resorts is the world's largest luxury hotel brand, which recently opened its 200th property worldwide, in Shanghai, China. InterContinental Berlin is one of our landmark hotels for the brand, and with that, one of the most treasured hotels within the InterContinental family. We are absolutely delighted that, with the support of our partner Union Investment, we are further investing in this iconic hotel and reinforcing its position within the thriving hospitality market in Berlin and among hotels of similar prestige in Europe and beyond."

Aernout de Jong, Regional General Manager, InterContinental Berlin, said: "I have been working at InterContinental Berlin for quite some time now - and I am very proud of this hotel and its team. It is an iconic building and an institution; even in a city with a rich culture like Berlin, this house has so much history in itself. We are making sure that this jewel of a hotel will go through a careful renovation that will make it even more luxurious and unique, without compromising its charm and magic. I am sure that our guests will be just as pleased as we are."

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.

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