Schroders announced an agreement to acquire Algonquin Management Partners, a pan-European hotel investment and management company. Their hotels are mainly managed by Algonquin brands or through franchises such as Sheraton, Marriott, Radisson and Sofitel.
Founded in 1998, Algonquin currently manages assets across Europe, representing over 7,500 hotel rooms and 1.8 million euros. The acquisition of Algonquin amplifies Schroders' growth in real estate and complements its existing capabilities and expertise. In addition, it represents an important step in the development of private and alternative strategic centres of expertise, which total more than 37 billion euros in assets under management.
This strategic expertise includes Securitised Credit, Private Equity, Infrastructure Finance, Insurance-Linked Securities and SME Lending alongside the Real Estate business.
"This acquisition complements Schroder Real Estate's existing focus in sectors including offices, retail, logistics, self-storage and large multiple use sites," said Duncan Owen, Head of Real Estate at Schroders. "Our strategy to concentrate on what we define as winning cities, which benefit from key structural themes of urbanisation, changing demographics, technological innovation, the shifting demand from Asia and strong infrastructure."
"Becoming part of Schroders, a FTSE 100 global investment management business, provides Algonquin with access to new assets, a broadly based Real Estate team with 13 offices across 5 continents and an enhanced proposition for clients. Schroders' stable long-term ownership structure and and heritage is aligned with Algonquin's investment philosophy," added Jean-Philippe Chomette, founder of Algonquin.
"The Schroders Real Estate team [is] delighted to be part of its expansion into the hotel sector. We believe it is a large market supported by strong fundamentals of growing occupational demand and a sector offering strong income growth for investors," continues Frédéric de Brem, Algonquin's current CEO who will become Head of Schroder Real Estate Hotels.
The financial terms of the transaction were not disclosed. The integration of the two companies will begin immediately.
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