Hotel Brands

GIC and APG acquire substantial stake in The Student Hotel

The Student Hotel has secured an investment from GIC and existing investor APG to accelerate international expansion.

The Student Hotel (TSH) has announced that Singaporean investment firm GIC and Dutch pension fund APG have agreed a deal to acquire a substantial stake in TSH and commit to invest to fuel further expansion for the hybrid hospitality leader.

The transaction values The Student Hotel, including assets currently under development, at €2.1bn (£1.8bn). The deal sees APG and TSH founder and CEO Charlie MacGregor increase its current stake in TSH and Aermont Capital sell out. APG first invested in TSH in 2015.

MacGregor and Aermont Capital entered into business in 2014 after MacGregor opened the first The Student Hotel in 2012. GIC now joins as a new investor.

TSH is a hybrid hospitality model, combining student accommodation, hotel rooms, co-working and meeting spaces, bars and restaurants. TSH is set to benefit from a strong summer while its student bookings for the 22/23 academic year already stand at “record levels”.

With APG and GIC’s commitments, TSH said it can “accelerate its growth strategy to expand into key European cities and grow its presence to 50 hotels from 25 hotels under ownership today, of which 15 are currently operational and three are opening in 2022, in Madrid, Barcelona and Toulouse”.

Macgregor said: “We are very excited to welcome GIC on board, and together with APG, we look forward to bringing The Student Hotel experience to more cities across Europe. We have bold plans and the additional committed capital will allow us to be even more ambitious.

“I’m very grateful for Aermont being alongside us since 2014, for what has been an amazing journey to where we are today. With our hybrid hospitality model, we have become a game-changer for the hospitality industry and have a major growth platform to welcome more guests to our hotels.”

Lee Kok Sun, chief investment officer of Real Estate, GIC, said: “We are pleased to invest in The Student Hotel as its assets are well-located, enjoy good connectivity to city centres and transportation networks, and are in close proximity to universities and other amenities. We are confident that this investment will generate resilient long-term returns.”

Morgan Stanley acted as financial advisor to TSH, Aermont Capital and APG. Allen and Overy acted as legal advisor to Aermont. Loyens & Loeff acted as legal advisor to TSH.

The transaction is subject to approval from the relevant regulatory authorities.

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