Union Investment has acquired the Holiday Inn Express hotel in Saxony, Germany, for Foremost Real Estate Dresden (FRED).

FRED is developing the three-star hotel for operator Foremost Hospitality HIEX.

The 218-room hotel is the first Holiday Inn Express to be built in the city of Dresden and is scheduled to open in 2011.

Union Investment’s hotel portfolio comprises 25 properties and projects, according to europe-re.com.