Union Investment has entered the Scandinavian hotel market with the acquisition of planned 25hours Hotel Paper Island in Copenhagen.
The property is part of the Paper Island flagship project, a man-made island situated in a prime city centre location in Copenhagen’s port area.
A mixed-use neighbourhood is being created on Paper Island that will include the hotel, 253 unique apartments, high-quality retail, gastronomy and event space, as well as the new Water Culture House.
The acquisition will be added to the holdings of institutional open-ended special real estate fund UniInstitutional European Real Estate, the company said.
Union Investment acquired the property from the development consortium Christiansholms Ø P/S, a joint venture between Danica Pension and renowned Danish project developers Nordkranen and Unionkul.
The 25hours Hotel Copenhagen Paper Island has 128 rooms and includes a restaurant, a café and a bar on the top floor. Three function rooms have capacity for 120 people. It is already leased to KNSA Germany for 25 years and will be managed by Ennismore under the 25hours lifestyle brand upon completion in March 2024.
25hours is part of Ennismore a global collective of entrepreneurial and founder built brands with purpose at their heart. Ennismore is a joint venture with Accor, formed in 2021.
“Copenhagen is one of Europe’s top hotel markets with high barriers to entry. We are therefore delighted to be able to enter the Scandinavian hotel market with the acquisition of this flagship project. It will appeal to business travellers and tourists alike thanks to its outstanding location in a newly developed district in Copenhagen city centre, within walking distance of many visitor attractions. Paper Island will provide a high-quality user experience and is expected to attract up to 1.9 million visitors a year in the future,” said Andreas Löcher, head of Investment Management Hospitality at Union Investment.