Private investment firm RoundShield has provided funding to Kabannas, a new European hybrid hotel platform, for the purchase of Hayweight House in Scotland’s capital, its fourth acquisition in nine months.
Hayweight House, located at 23 Lauriston Street in Edinburgh, is to be converted into a “new format hybrid hotel, providing a mix of innovative room and bed products across five floors”, Kabanna said.
With RoundShield’s funding and support, the Kabannas platform is targeting more than €100m worth of acquisitions focused on 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.
This segment accounts for over 35% of all global travel and approximately €200bn in annual spend, but on average represents less than 10% of available accommodation supply in gateway cities, according to Kabannas.
Kabannas executives added that the platform’s acquisition profile is “very flexible” and “centred around repositioning hospitality or non-prime office properties with assets ranging in size from 2,000sqm to 10,000sqm, located in European gateway cities.
Acquisition values typically range between €10m and €50m and asset acquisitions are fully funded by Kabannas and RoundShield with no additional external financing requirement.
Additionally, Kabannas operates as purchaser, developer and operator, “thereby providing greater transaction certainty”, it said.
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