Three former Pro-invest executives are planning to raise half a billion dollars to acquire under-performing hotel property assets in Asia Pacific.
Phil Kasselis, Luke Sullivan and Ed Faraguna have launched Hospitality Private Equity Partners (H-PEP), a private equity real estate firm dedicated to investing in hospitality assets with “value-add potential as the Asia Pacific tourism sector recovers in the wake of the Covid pandemic”.
H-PEP will provide its investors access to hotel investment opportunities through a fund structure, separately managed accounts, or direct investment.
H-PEP said it is in talks with investors regarding raising $500m (€582m) for Asia Pacific hospitality opportunities.
The company, which has already established a presence in Singapore, will focus on hotels in the upscale, upper-upscale and luxury segments, in gateway cities and resort locations in markets throughout the region, it said.
There is no doubt that Covid has adversely impacted the performance of many hotels and resorts located across Asia Pacific, said Kasselis who leads the business as CEO. Sullivan serves as H-PEP’s CIO with Faraguna as CFO.
“The current market cycle presents enormous opportunities to acquire underperforming assets, implement value enhancing asset management strategies, and take advantage of a post-Covid travel recovery in one of the world’s most dynamic regions, Kasselis said.
“We are already seeing strong investor appetite in the hotel sector with prominent investment groups such as GIC, Blackstone, Partners Group and KSL Capital Partners active in Asia Pacific,” Kasselis said.
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