THE latest opportunistic fund by Tristan Capital Partners has acquired a majority stake in Raag Hotels, which owns Point A Hotel, for £420 million.
The European Property Investors Special Opportunities 6 fund by Tristan Capital will own the property along with minority partners Queensway, a company associated with the Jivraj family, and a company owned by Naguib Kheraj, a statement said.
Following the deal, Wellcome Trust will exit from the hotel group, which has 1,520 rooms in 10 hotels in strategic locations near transport hubs, with 80 per cent of its value in London.
According to the statement, the independent budget boutique brand provides the fund with an immediate footprint across the best markets in the UK and Ireland.
Queensway will co-invest and act as a hotel operator, asset manager and development partner for future sites.
The shareholders will pump additional funds for the next phase of growth of Point A Hotels, and they plan to double the size over the medium term.
Kristian Smyth, executive director, investments at Tristan Capital Partners said: “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 2-3 acquisitions per year with the objective of doubling the portfolio in the medium term.”
Naushad Jivraj, CEO, Queensway said: “Under the management of Queensway Hotels, the Point A Hotels brand has developed a high-quality product at a great value, generating positive customer feedback resulting in strong occupancy levels.
“Wellcome Trust has 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."
Lisha Patel, managing director, investment division at the Wellcome Trust said: “Our participation in the significant growth and evolution of the Raag Hotels business has produced strong returns over the life of our investment.
"The strength and quality of the Point A Brand, the hotel portfolio and the Queensway management team attracted very keen interest from institutions to acquire our shareholding and we are confident the business will continue to perform well and deliver excellent guest experience under new ownership.”
