Hotel investor and operator Kabannas has acquired Hayweight House in Edinburgh, marking its fourth acquisition in nine months.
Hayweight House is to be converted into a new format hybrid hotel by Kabannas, providing a mix of innovative room and bed products across five floors. The asset was purchased from the Scottish Action for Mental Health charity.
With RoundShield’s funding and support, the Kabannas platform is targeting €100 mln+ in acquisitions of micro accommodation assets across Europe.
Kabannas’ 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 €200 bn in annual spend, but on average represents less than 10% of available accommodation supply in gateway cities.
UK property firm Graham + Sibbald advised SAMH on the transaction.
Kabannas and RoundShield Partners were advised on the transaction by Morton Fraser MacRoberts, Bellwether Green and Baker & McKenzie.
