North Wind Capital and a fund managed by Banor Capital have partnered to launch a £500 million fund focused on the European hospitality sector.
The venture will focus on underperforming hotels, targeting properties with diverse income streams, brand possibilities and which show potential for value-add improvement.
North Wind and Banor are aiming to build up a portfolio worth around £500 million. Both parties have committed an initial £25 million each to seed the fund which will target distressed small and mid-sized hotels in the UK, Southern Europe and Italy.
They join companies such as Redevco and Swiss Finance & Property Group which recently teamed up to form a hotel joint venture focused on acquiring and re-vamping tired hotel assets in Spain and Portugal.
What they said
Lorenzo Guidi, executive director at Banor Capital said: “We believe legacy headwinds has created market dislocation in pockets of the European hospitality sector presenting compelling risk-adjusted investment opportunities for investors with the right mix of operational acumen, asset management and debt restructuring expertise.”
Ben Williams, CEO at North Wind Capital said: “Current market dynamics have created pricing dislocation, opening the door for specialist hospitality investors like us to capitalise on, as travel demand for business and leisure recovers.”