Queensway partners with Tristan Capital Partners to grow the Point A Hotels platform
Queensway has partnered with Tristan Capital Partners for the next phase of growth of the Point A Hotels business. Tristan’s latest opportunistic fund European Property Investors Special Opportunities 6 (EPISO 6) has acquired a majority shareholding in Raag Hotels Limited which owns Point A Hotels. The £420m transaction has provided a full exit for the Wellcome Trust, whilst Queensway and a company owned by Naguib Kheraj will remain as minority partners.
Under the new arrangement, Queensway will co-invest and act as hotel operator, asset manager and development partner for future sites. The ambition is to double the size of the portfolio from 1,520 bedrooms to 3,000 over the medium term.
Founded in 2009, Tristan Capital Partners is an employee-owned real estate investment manager, specialising in value-added investment strategies across all property types in the UK and Europe. Tristan’s pan-European real estate funds include core+, opportunistic and debt strategies, with total assets under management of over €14 billion and a loyal client base of institutional and private investors. The acquisition of Point A Hotels and partnership with Queensway represent Tristan’s confidence within the hotels sector and trust in the Point A brand, product, service as well as Queensway’s management, operations and development capability.
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.
Wellcome Trust have been an excellent partner to work with over the past eight years and we are pleased that this transaction has produced a successful outcome for them.
We are excited for the next chapter of the Point A Hotels story as we, together with Tristan, continue to develop our product, brand and service to the ever-evolving needs of our consumers.”
Lisha Patel, Managing Director, Investment Division at the Wellcome Trust said
“Our participation in the significant growth and evolution of the Raag Hotels business has produced strong returns over the life of our investment. The strength and quality of the Point A brand, the hotel portfolio and the Queensway management team attracted very keen interest from institutions to acquire our shareholding and we are confident the business will continue to perform well and deliver excellent guest experience under new ownership.”
Queensway very much looks forward to working with Tristan and the entire Point A Hotels family to write the next chapter of the Point A story.
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.