Union Investment sells Munich hotel to Blue Coast Capital for €74.9 million

Union Investment has sold the Courtyard by Marriott Munich City Center to Blue Coast Capital for approximately €74.9 million. The transaction value slightly exceeded the property’s most recent valuation. Located at Schwanthalerstrasse 35-37, the hotel had been held in the UniImmo: Europa open-ended real estate fund since 2006.

The sale was driven by strategic portfolio considerations, particularly due to the asset’s age, and is expected to support the fund’s current liquidity position. Andreas Löcher, Head of Investment Management Operational at Union Investment, noted that the strong performance of Munich’s hotel market in 2024, along with sustained investor interest in key German cities such as Berlin and Hamburg, provided favorable conditions for the disposal.

“The Courtyard by Marriott was held for 19 years, and this transaction reflects investor appetite for hotel assets with value potential, in addition to traditional core properties,” added Madeleine Groß, Head of Investment Management Hotel at Union Investment.

The Courtyard by Marriott Munich City Center, completed in 2006, features 248 rooms and is located near Munich Central Station. Its proximity to popular destinations like Karlsplatz and Theresienwiese has made it a preferred choice for international visitors.

Union Investment was advised on the sale by JLL and legal counsel Hogan Lovells. Following the transaction, the company retains a portfolio of seven hotel properties in Munich, collectively valued at around €500 million.