The student hotel will become a billion-dollar company following an investment agreement: day passes

Globally active hotel groups such as Accor or Marriott have billions in stock market valuations. “The Student Hotel” now joins the group of companies with a ten-digit market rating. The brand currently has only 15 hostels, one of which is in Berlin, and now wants to expand significantly with investor money.

Studenterhotellet (TSH), APG, Aermont Capital, Charlie MacGregor and GIC have just entered into an agreement under which GIC and APG will acquire a significant stake in TSH and commit to the continued expansion of the hybrid hospitality manager to invest, according to regulatory approvals. The transaction values ​​the Student Hotel, including assets under development, at € 2.1 billion.

GIC is an investment company from Singapore, APG is a Dutch pension fund. Aermont Capital, which has had an interest in the project since 2015, is selling its stake in The Student Hotel.

With the transaction, APG and Charlie MacGregor increase their current ownership interest in the Student Hotel. APG first invested in the Student Hotel in 2015. MacGregor and Aermont Capital started in 2014, after MacGregor opened the first The Student Hotel in 2012. GIC has now joined as a new investor.

The hybrid hospitality model of Studenterhotellet, which combines studio apartments, hotel rooms, co-working and meeting rooms, bars and restaurants, is also proving to be attractive to investors. During the pandemic, the hybrid model proved robust, as the Student Hotel was able to significantly increase the allocation of student rooms when leisure and business travel fell drastically, thus maintaining a high occupancy rate and generating a positive cash flow. As the hotel and travel market is improving sharply, The Student Hotel believes that it can benefit from a strong summer 2022, while student booking for the academic year 22/23 is already at record high levels.

In Germany, The Student Hotel is currently represented by a hostel in Berlin Mitte. The student hotel in Dresden with over 300 rooms is expected to close its doors indefinitely on October 1 due to the corona pandemic. Although the reopening is scheduled “as soon as possible”, the company did not disclose a date at that time and no longer lists the house on Prager Straße on its website. (Day pass reported)

With commitments from APG and GIC, The Student Hotel aims to accelerate its growth strategy to expand into key European cities and increase its footprint from the current 25 hotels to 50 hotels, of which 15 are currently operational and three in Madrid in 2022, Barcelona and Toulouse must be opened.

Studenterhotellet believes that it is well positioned for the Millennial and Gen-Z audiences, with its focus on community building through its mixed facilities and spaces, offering collaboration and meeting rooms that also cater to local startups, businesses and communities take on . Connection with the local communities is particularly important for the Student Hotel

To better meet the needs of guests and offer more flexible offers, TSH invests in technology to implement the first room / time booking platform in its hotels. This means that guests can book any space in the TSH buildings for a specific period – from meeting rooms and co-working desks to access to the gym, pool and table tennis tables.

Charlie Macgregor, Founder and CEO of The Student Hotel, said: “We are pleased to welcome GIC on board, and together with APG we look forward to bringing the Student Hotel experience to more cities in Europe. We” We have bold plans and the extra capital will allow us to be even more ambitious. I am very grateful that Aermont has been with us since 2014 and has taken us on a fantastic journey to where we are today. With our hybrid hospitality model, “we have transformed the hotel industry and have an important growth platform to welcome more guests to our hotels.”

Lee Kok Sun, Chief Investment Officer for Real Estate, GIC, said: “We are pleased to invest in the Student Hotel given its convenient location, easy access to city centers and transport networks and close to universities and other facilities. We are confident that this investment will generate robust returns in the long run. “

Tracy Stroh, Regional Head of Europe, Real Estate, GIC, said: “The student hotel’s hybrid hospitality model is unique. It consists of custom-built student housing that can be used for both business and leisure purposes. That flexibility allows TSH to capitalize on opportunities, “as demand fluctuates throughout the year. We look forward to working with TSH and APG to deliver greater long-term value.”

Robert-Jan Foortse, Head of European Property Investments, APG, said: “We are pleased to have the opportunity to increase our engagement with TSH and support the continued growth of the platform. We would like to thank Aermont for all their efforts over the last couple of years and “Thank you for the good cooperation. Together with GIC, Charlie McGregor and the rest of the TSH team, we look forward to further expanding TSH’s unique hybrid and exciting concept in Europe. We believe that TSH will serve our pension fund customer ABP and will offer its participants an attractive long-term, stable return on investment. “

Vincent Rouget, partner at Aermont Capital, said: “Since 2014, we have been proud partners for Charlie MacGregor, The Student Hotel and his management team and for APG. This fantastic journey, which started with a promising project in Amsterdam, has grown into an unsurpassed portfolio developed with 25 primary assets and projects in 8 countries in Europe.The investment in the Student Hotel emphasizes Aermont Capital’s expertise and experience in supporting operational real estate platforms to realize their potential through real estate focused strategies.Charlie’s vision of a true hybrid operation model for hospitality has placed Studenterhotellet at the forefront of trends in hospitality and the real estate industry, and the future of TSH under the leadership of the new shareholders is bright.

Morgan Stanley served as financial advisor to TSH, Aermont Capital and APG. Allen & Overy served as legal counsel for Aermont. Loyens & Loeff acted as legal counsel for TSH.

The transaction is subject to approval by the relevant regulatory authorities.


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