Union Investment Sells Hilton Garden Inn Innsbruck to Operator Schiehser Hotels After 11-Year Hold

Union Investment Real Estate Real Estate has sold the 159-room Hilton Garden Inn Innsbruck to Schiehser Hotels, the hotel's current operator, the firm announced July 9, 2026. The transaction transfers ownership of the property at Olympiastraße 41 in Innsbruck, Austria, from Union Investment's open-ended real estate fund immofonds 1 to the hotel group, which will continue to operate the asset under the Hilton Garden Inn brand. Financial terms were not disclosed.

Asset Background and Value-Add History

The hotel, built in 2011 and situated just south of Innsbruck's Old Town directly opposite Olympia World, has passed through several operators and brand flags since its opening. It was operated as a Ramada Hotel until July 2021, before HR Group — now Revo Hospitality — took over in 2022 and temporarily ran the property as the Tivolihotel Innsbruck. Union Investment entered the asset into immofonds 1's portfolio in 2015.

Ahead of a re-flagging in late 2024, Union Investment invested approximately €4 million to modernize the hotel and bring it in line with Hilton Garden Inn brand standards. Schiehser Hotels assumed operations at the start of 2026 and will now manage the property as owner on a long-term basis.

"Innsbruck is an attractive market for operators and investors due to stable demand and a limited project pipeline. With 159 rooms, the hotel also has a very attractive size. We therefore seized this opportunity to sell it profitably to the current operator," said André Pinto Gomez, Senior Investment Manager for Hospitality at Union Investment.

Fund Performance and Strategic Rationale

The sale concludes an approximately 11-year holding period for immofonds 1, during which the hotel's market value increased by roughly 20%. Union Investment characterized the exit as portfolio-strategy driven, with proceeds intended to strengthen the fund's liquidity position.

"During the 11-year holding period, the hotel increased its market value by approximately 20 percent and made a positive contribution to the fund's performance. The sale is being made for portfolio strategy reasons and strengthens the liquidity position of immofonds 1," said Petia Zeiringer, fund manager and member of the Executive Board of Union Investment Real Estate Austria AG.

Immofonds 1 is an open-ended real estate fund distributed exclusively in Austria.

Innsbruck Market Context

The hotel is located south of Innsbruck's Old Town, directly across from Olympia World, with the Olympia ice arena and Tivoli soccer stadium nearby. The airport, train station, and city center are all within a few minutes' reach, according to Union Investment.

Union Investment cited stable demand and a limited development pipeline as factors underpinning Innsbruck's appeal to both operators and investors.

About Schiehser Hotels

Schiehser Hotels was founded in 2019 by Alexander Schiehser and currently operates 21 hotels across Vienna, Munich, Passau, Innsbruck, and Salzburg, with additional projects in development. The group's portfolio includes properties affiliated with international brands such as Hilton, IHG, and Accor, as well as independently developed concepts under proprietary brands. The acquisition of the Hilton Garden Inn Innsbruck represents a continuation of the group's stated expansion strategy in Austria's provincial capitals.

Union Investment was advised on the transaction by Christie & Co, Vavrosky Heine Marth Rechtsanwälte GmbH, and TPA Group.