Dutch investor APG, which has already invested in Citizen M, is joining forces with GIC to accelerate the brand's development.
The 2014 Hospitality Awards-winning brand has come far enough to maintain the interest of an investor already strongly positioned in the Hostels and millennials target niche and attract a new entrant.
The pending transaction, which is awaiting regulatory approval, values the company at €2.1 billion.
On the operational side, the company is currently developing a booking tool that will also take into account meeting rooms, co-working spaces and relaxation facilities such as swimming pools.
The brand is currently present in 15 European city destinations, a development that has accelerated since the first opening in Amsterdam. 7 properties have joined the portfolio in the Netherlands, 2 in Italy, 2 in Spain, 1 in Austria and 1 in France. The company has announced 11 properties in the pipeline, including a second in France, 4 in Italy, 2 new ones in Spain, 2 in Portugal and 1 in Scotland. Singapore's GIC joins APG and The Student Hotel founder and CEO Charlie MacGregor, both of whom will be increasing their stake in the company, also with the aim of doubling the brand's pipeline.
Tracy Stroh, Region Head of Europe, Real Estate, GIC, declared, “The Student Hotel’s hybrid hospitality model is unique. Anchored by purpose-built student accommodation that appeals to the student demographic, yet still catering to both business and leisure uses, this flexibility enables TSH to capture opportunities as demand patterns fluctuate throughout the year. We look forward to partnering with TSH and APG to generate more value-add over the long term.”
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