US: The latest fund established by ActivumSG Capital Management has acquired hotel operator Odyssey Hotel Group, helping to support Odyssey’s platform growth.
The purchase marks the second corporate acquisition by ActivumSG Real Estate Fund VI, following that of Dutch residential developer VanWonen almost one year ago. It also follows the purchase of the luxury Nobu Hotel in Barcelona in December 2020.
Saul Goldstein, CEO and founder of ActivumSG, said: “We’re looking to accelerate the company’s growth through acquisitions and more hotel openings when others will still be picking up the pieces. We see the steady recovery of leisure and business travel in Europe’s most resilient hotel markets as a major opportunity for our latest fund. This corporate deal highlights how we look at every angle, so our investors get the best risk-adjusted exposure to strong investment themes.”
Odyssey focuses on opening and operating hotels in mid-sized towns and cities in continental Europe. It currently operates 12 hotels in Germany, the Netherlands and Finland, mostly under franchise agreements with Marriott and IHG.
The group has a pipeline of 20 hotels scheduled to open by 2025, increasing the total number of guest rooms it operates to more than 5,200. Locations include Austria and Spain.
Rick van Erpe, Odyssey CEO, said: “The Activum fund’s support will allow us to scale up our platform and penetrate new markets in Europe, broadening the footprint of our major hotel brand partners. We are looking ahead with confidence at a post-Covid landscape for the hospitality sector, which will present opportunities for those operators with the liquidity, agility and industry expertise to benefit most from the recovery.”
Advising on the transaction were JLL and Greenberg & Traurig, while Adelaer Group and Stibbe were advisers to Odyssey.
ActivumSG Capital Management Ltd. is a Jersey-based private equity investment manager which focuses on special situations in real estate markets. It has raised more than €2 billion in initial equity commitments for the six closed-end funds it has established to date.