UK: Tristan Capital Partners (TCP) has purchased a majority stake in Raag Hotels, which owns Point A Hotels, for £420 million.
The Point A portfolio comprises 1,520 rooms across 10 hotels. 80 per cent of its value is located in London.
TCP, through its European Property Investors Special Opportunities 6 fund (EPISO 6), acquired the shares from The Wellcome Trust. Other shareholders including Queensway and a company owned by Naguib Kheraj will remain as minority partners.
Under the new partnership, Queensway will co-invest in Point A and act as hotel operator, asset management and development partner. The portfolio is expected to double in size over the medium term.
Naushad Jivraj, chief executive of Queensway, said: “We are delighted to form this new partnership with Tristan Capital Partners’ fund to continue to significantly grow the Point A platform to provide consumers with a budget boutique offering, in great city centre locations with personal and memorable service.
“Wellcome Trust have been an excellent partner to work with over the past eight years and we are pleased that this transaction has produced a successful outcome for them. We are excited for the next chapter of the Point A Hotels story as we, together with Tristan, continue to develop our product, brand and service to the ever-evolving needs of our consumers.”
Kristian Smyth, executive director of investments at Tristan Capital Partners, said: “The acquisition of this hotel platform reflects our wider hotel strategy of partnering with best-in-class operators in market segments that are resilient to market volatility with substantial growth potential.
“All the hotels are strategically situated in city centres within vibrant neighbourhoods, close to demand generators including business districts, tourist attractions and event venues. Our ambition is to materially grow the platform in the UK and Ireland alongside the Queensway team with two-to-three acquisitions per year.”
EPISO 6 was advised by BCLP, Maples, Brodies, PWC, Savills, Artelia and Longevity.
Raag Hotels was advised by CBRE, Eastdil, Derek Gammage, DLA Piper, BDO and Voisin Law.
Queensway was advised by GSC Solicitors.