Mactaggart Family & Partners has expanded its hotel portfolio with the acquisition of a majority stake in Sleeperz Hotels.
The investor, which owns Resident Hotels, plans to expand Sleeperz Hotels by targeting downtown hub locations.
It acquired Costain’s and Connection Capital’s stakes in the company, alongside shares held by Sleeperz management, while also investing alongside André Hoffmann, a long-time investor in the company.
Resident Hotels chief executive David Orr will work with Sleeperz Hotels chief executive David Myers to review operations with a view to growth – and Orr is expected to take over management of the brand through a management deal hotelier, which will be signed later this year.
Sleeperz Hotels, which was launched by Myers in 2008, builds and operates budget hotels near major rail stations in Edinburgh, Dundee, Cardiff and Newcastle. The group plans to invest more, alongside Hoffmann, with Sleeperz remaining lead investor and vice-chairman of Roche Holding.
Orr said, “We look forward to engaging with landlords and institutions, as well as directly securing venues as we grow the brand and build on David’s innovation.
“There are values and synergies aligned between Sleeperz and The Resident as a platform, as well as significant differences, and this brand gives us the opportunity to access more destinations in the UK.”
William Laxton, Managing Director of Mactaggart Family & Partners, said: “Sleeperz is a different but complementary client product and investment strategy, alongside our Resident Hotels platform, and underscores our confidence in the hospitality industry and hotels across the downtown in particular.
“We believe there are opportunities for expansion in vibrant urban centers and we look forward to working with the Sleeperz teams to grow this brand with our own reputation-driven approach to revenue.”
Resident Hotels has expanded under Mactaggart Family & Partners and last year announced its sixth location, a new 166-bed hotel in Edinburgh, due to open in early 2024.
Mactaggart Family & Partners is the operating platform of Western Heritable, a property company, private equity firm and family office, with assets under management of approximately £750m.
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