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Kabannas, the European hybrid hotel platform, has announced the successful acquisition of its latest property asset, Hayweight House in Edinburgh, its fourth acquisition in nine months as it continues with its focused brand rollout across Europe.
Hayweight House is to be converted into a new format hybrid hotel, providing a mix of innovative room and bed products across five floors.
The Kabannas platform is targeting €100m+ (£84.4m) in acquisitions of micro accommodation assets across Europe. Kabannas said its strategy is to expand its hybrid hospitality brand across 15 locations in European gateway and cultural capital cities to service the underserved “ultra-affordable” hospitality market.
It added that this segment accounts for over 35% of all global travel and approximately €200bn (£168.8bn) in annual spend, but on average represents less than 10% of available accommodation supply in gateway cities.
Kabannas’ vision for the platform is to “redefine the guests stay experience” by creating a new, high- quality offering of ultra-affordable accommodation, with a focus on integrating micro-accommodation with exceptional experiences.
In contrast to mainstream hospitality brands, the Kabannas acquisition profile is very flexible and centred around repositioning hospitality or non-prime office properties with assets ranging in size from 2,000 to 10,000 sqm, located in European gateway cities.
The SAMH (Scottish Action for Mental Health) charity and the Kabannas teams have worked closely together to successfully manage the sale completion of Hayweight House. UK property firm Graham + Sibbald advised SAMH on the transaction.
Kabannas and RoundShield Partners LLP were advised on the transaction by Morton Fraser MacRoberts LLP, Bellwether Green and Baker and McKenzie LLP.
