Resident Hotels Family Acquires Majority Stake in Sleeperz in The UK
Main Photo: The Sleeperz Cardiff
Date: May 2022
Name: Sleeperz – with locations as below; Edinburgh is branded Cityroomz
Locations: Cardiff, Newcastle, Edinburgh and Dundee – Wales, England and Scotland, UK
Number of Keys: TBA
Seller: Costain’s and Connection Capital’s stakes in the business, alongside the shares held by Sleeperz management. Resident has also invested additional funding alongside André Hoffmann, a long-standing investor in the business.
Buyer: Mactaggart Family & Partners, who own Resident Hotels
Mactaggart Family & Partners has added to its hotel holdings with the acquisition of a majority stake in Sleeperz Hotels. The investor, which owns Resident Hotels, plans to expand Sleeperz Hotels targeting city-centre hub locations.
Mactaggart Family & Partners has acquired Costain’s and Connection Capital’s stakes in the business, alongside the shares held by Sleeperz management. The group has also invested additional funding alongside André Hoffmann, a long-standing investor in the business.
William Laxton, CEO, Mactaggart Family & Partners, said: “Sleeperz is a different but complementary guest product and investment strategy, alongside our Resident Hotels platform, and underlines our faith in the hotel sector and city-centre hotels in particular.
“We believe there is scope for expansion in vibrant city hubs and look forward to working with the teams at Sleeperz to grow this brand with our own reputation led approach to revenue at its heart.”
Resident Hotels’ CEO, David Orr, will be working with David Myers, CEO of Sleeperz Hotels, and his team to review operations with an eye to growth and is expected to take over the running of the brand through a hotel management agreement, to be signed later this year.
Sleeperz Hotels, which was launched by Myers in 2008, builds and operates distinctive premium budget hotels close to mainline rail stations in Cardiff, Newcastle, Edinburgh and Dundee. The group plans to invest further, alongside André Hoffmann, Sleeperz remaining principal investor and Vice Chairman of Roche Holding Ltd.
Orr said: “I have great respect for David’s achievements. Sleeperz has led the way in the sector; combining distinctive design, a compelling offer and strong core values to create an independent premium budget hotel business with real appeal to guests.
“The brand has an underlying authenticity that eludes many bigger competitors and that’s really interesting for us and for investors, who are drawn to distinctive, well-run brands. We look forward to engaging with property owners and institutions as well as securing sites direct as we expand the brand and build on David’s innovation.
“There are aligned values and synergies between Sleeperz and The Resident as a platform, as well as significant differences, and this brand gives us, as Resident Hotels Limited, the opportunity to access more destinations in the UK. The current Sleeperz portfolio is very attractive, with Cardiff, Newcastle and Dundee all striking buildings, while Edinburgh is more classical.
“As one of the founders of City Inn, I can see the incredible potential this section of the market affords creative, independent hoteliers. It is exciting to be working with Sleeperz and we are really looking forward to supporting the team.”
David Myers said ‘We are delighted to be working with Mactaggart Family & Partners and The Resident Team. I am confident that with the additional investment and operational expertise Sleeperz can become a true challenger brand to the mainstream premium budget market.
Resident Hotels has expanded under Mactaggart Family & Partners and last year announced it’s sixth location, a new 166 bed hotel The Resident Edinburgh due to open in early 2024. A further c. 125 bed Central London project is also secured and in planning.
Resident Hotels has plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms targeted. Growth plans for Sleeperz will be announced in due course.
Price: Undisclosed
THPT Comment: A great fit for both parties…having stayed at the Sleeperz in Newcastle, it does what is says on the tin – a comfortable night’s stay in a well-designed room at a reasonable price….may both brands go forward in style
First Seen: RPBi News
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market. For more information – Visit www.thpt.co.uk or email [email protected]
