Tristan Capital Partners has bought a majority stake in hotel chain Point A Hotels in a deal worth around £420 million.
The transaction through its European Property Investors Special Opportunities 6 fund (EPISO 6) sees it acquire a majority shareholding in Jersey-based Raag Hotels Limited the owner of Point A Hotels.
The transaction will provide a full exit for the Wellcome Trust, while the other current shareholders, Queensway, a company associated with the Jivraj Family, and a company owned by Naguib Kheraj, will remain as minority partners.
The Point A portfolio comprises 1,520 rooms in 10 hotels, with 80% of its value in London.
Under the new partnership, Queensway will co-invest and act as hotel operator, asset manager and development partner for future sites. The shareholders have committed significant additional equity to fund the next phase of growth of Point A Hotels with the goal of doubling the size of the estate over the medium term.
Queensway launched the Point A Hotels brand in 2017.
Tristan Capital’s last hotel deal came in October 2021 with the acquisition of a hotel in Manchester through its EPISO 5 fund.
The existing banks, HSBC and NatWest were retained as lenders.
EPISO 6 was advised by BCLP, Maples, Brodies, PWC, Savills, Artelia and Longevity.
Raag Hotels was advised by CBRE, Eastdil, Derek Gammage, DLA Piper, BDO and Voisin Law.
Queensway was advised by GSC Solicitors.
What They Said
Kristian Smyth, executive director, investments at Tristan Capital Partners, said: “The acquisition of this hotel platform reflects our wider hotel strategy of partnering with best-in-class operators in market segments that are resilient to market volatility with substantial growth potential.
“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: “We are delighted to form this new partnership with Tristan Capital Partners’ fund to continue to significantly grow the Point A platform to provide consumers with a budget boutique offering, in great city centre locations with personal and memorable service. Under the management of Queensway Hotels, the Point A Hotels brand has developed a high-quality product at great value, generating positive customer feedback resulting in strong occupancy levels.