Mactaggart Family & Partners has added to its hotel holdings with the acquisition of a majority stake in Sleeperz Hotels.
The investor, which owns Resident Hotels, plans to expand Sleeperz Hotels by targeting city-centre hub locations.
It acquired Costain’s and Connection Capital’s stakes in the business, alongside the shares held by Sleeperz management, while also investing alongside André Hoffmann, a long-standing investor in the business.
Resident Hotels’ chief executive David Orr will work with Sleeperz Hotels chief executive David Myers to review operations with an eye to growth - and Orr is expected to take over the running of the brand through a hotel management agreement, to be signed later this year.
Sleeperz Hotels, which was launched by Myers in 2008, builds and operates budget hotels close to mainline rail stations in Edinburgh, Dundee, Cardiff and Newcastle. The group plans to invest further, alongside Hoffmann, Sleeperz remaining principal investor and vice chairman of Roche Holding.
Orr said: “We look forward to engaging with property owners and institutions as well as securing sites direct as we expand the brand and build on David’s innovation.
“There are aligned values and synergies between Sleeperz and The Resident as a platform, as well as significant differences, and this brand gives us the opportunity to access more destinations in the UK.”
William Laxton, chief executive at Mactaggart Family & Partners, said: “Sleeperz is a different but complementary guest product and investment strategy, alongside our Resident Hotels platform, and underlines our faith in the hotel sector and city-centre hotels in particular.
“We believe there is scope for expansion in vibrant city hubs and look forward to working with the teams at Sleeperz to grow this brand with our own reputation led approach to revenue at its heart.”
Resident Hotels has expanded under Mactaggart Family & Partners and last year announced its sixth location, a new 166 bed hotel in Edinburgh, which is due to open in early 2024.
Mactaggart Family & Partners is the operating platform of Western Heritable, a property, private equity firm and family office, with assets under management of approximately £750m.
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