UK: Mactaggart Family & Partners, the majority investor in Resident Hotels Ltd, has acquired a controlling stake in Sleeperz Hotels.
Resident Hotels Ltd (RHL), the operating company behind The Resident hotel brand, is expected to take over Sleeperz through hotel management agreements in the late summer/early autumn.
Mactaggart acquired Costain’s and Connection Capital’s stakes in Sleeperz, alongside the shares held by the company’s management.
Additional funds have been earmarked to expand Sleeperz in city-centre locations, focussing on management contracts. André Hoffmann, Sleeperz remaining principal investor and vice chairman of Roche Holding, has also invested additional funding.
William Laxton, CEO at Mactaggart Family & Partners, said: “Sleeperz Hotels is a good fit with our investment in RHL and underlines our faith in the hotel sector and city-centre hotels in particular. We believe there is great scope for expansion in vibrant city hubs and look forward to working with the team at Sleeperz Hotels to grow this high-quality brand.”
David Myers, CEO at Sleeperz, said: “This is positive news for Sleeperz as it means we have two supportive principle investors who are prepared to invest in and grow the business with additional operational expertise through Resident Hotels Ltd.”
David Orr, CEO at RHL, added: “I have great respect for David’s achievements. Sleeperz has led the way in the sector; combining distinctive design, a compelling offer and strong core values to create an independent premium budget hotel business with real appeal to guests.
“The brand has an underlying authenticity that eludes many bigger competitors and that’s really interesting for us and for investors, who are drawn to distinctive, well-run brands. 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, as Resident Hotels Limited, the opportunity to access more destinations in the UK. The current Sleeperz portfolio is very attractive, with Cardiff, Newcastle and Dundee all striking buildings, while Edinburgh is more classical.
“As one of the founders of City Inn, I can see the incredible potential this section of the market affords creative, independent hoteliers. It is exciting to be working with Sleeperz and we are really looking forward to supporting the team.”
Resident Hotels plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years. A new site in Edinburgh is due to open in 2024.
