KKR and the Hatchwells launch a joint venture to invest in hostels in Europe

November 6, 2019
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This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Both companies have created a joint venture to build a pan-European platform of hostels.

The investor KKR and Excem Real Estate, owned by the Hatchwell family, join forces in the hotel business. Both companies have created a joint venture to build a pan-European platform of ‘hostels’ with an initial portfolio of five assets in the Iberian Peninsula. Ultimately, the goal is to make the platform grow to have more than 25 assets (with about 8000 beds) in central locations in the main cities of Western Europe and some selective locations in Central Europe.

The hostels will be managed under the CATS brand, whose entire property is in the hands of Excem, just as idealist / news advanced. These five initial hostels are located in the center of Madrid (3 active), Lisbon and Porto, with 324 beds already in operation and 659 beds about to be reopened in the next 18 months. The platform will benefit from positive structural trends within the hostels sector, including the continued growth of European tourism, favorable winds in terms of demography, and an accessible and extensive customer base.

KKR's investment is based on the solid trajectory and experience of its European real estate team in the hotel and leisure sectors, including recent investments in a hotel in La Villette (Paris), at Intertur Hotels Group (five hotels in the Balearic Islands) and two Radisson hotels in Antwerp. The investment for the constitution of the joint venture with Excem RE was made through its fund "Real Estate Partners Europe".

Excem invests and manages assets in the Spanish real estate market. It was founded 15 years ago and is currently composed of 60 real estate professionals. Excem has a dual business model for co-investment and asset management, and more than one hundred international investors have joined the real estate group to acquire, develop, reposition and/or sell assets, focusing on creating value through expert management and maximizing The return on investment.

Currently, its combined portfolio (of investments and managed assets) exceeds 1,000 million euros. In 2017, Excem acquired CATS, with the aim of making it one of the global leaders in the hostel sector. The founders of Excem, David Hatchwell and Andrés Sánchez Lozano, have extensive experience in real estate and finance.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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November 6, 2019

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