Internal fit-out work is under way and should be completed in December 2022 in order for the hotel to open in March 2023.

The buyer is a Union Investment special fund and the seller is a subsidiary of developer Planquadr.at, a Salzburg-based partner company of Soravia.

The purchase price was not disclosed by the parties.

Andreas Löcher, head of investment management hospitality at Union Investment, said: ‘The resort hotel sector has experienced decades of growth. It has shown itself to be crisis-proof and proved its resilience again during the Covid-19 pandemic. New concepts and the ongoing professionalisation of operators are making the asset class increasingly attractive as an investment target for institutional investors. Acquisition of this hotel on Lake Tegernsee further diversifies Union Investment’s hotel portfolio.’

Christian Häupl, CEO of Planquadr.at, added: ‘It is a great honor for Planquadr.at and SORAVIA that Union Investment could be convinced by our sustainably developed project with a concept tailored for the location.’

Located just 300 metres from Lake Tegernsee, the hotel will offer 100 double rooms, 11 junior suites, 14 standard suites, a 90-seat restaurant, a 180-seat rooftop bar, event facilities and a wellness area with pool.

The architecture is unusual for the region, giving the leisure property a distinctive appearance and setting it apart from its local competitors.

The hotel is being built with sustainability considerations in mind, and LEED Gold certification will be pursued.

A 20-year lease for the building has already been secured by Four Peaks Hospitality, a member of the Soravia Group.

The hotel will operate under the name Caro & Selig, Tegernsee, Autograph Collection, a premium soft brand of Marriott Bonvoy.

Union Investment’s global hotel portfolio currently consists of 90 properties with a total value of €6.7 bn.

The transaction was brokered by Christie & Co.