£500m UK hotel development joint venture launched

Hero Enterprise and Catalyst Capital have launched a £500m joint venture to invest in and develop hospitality-led projects in the UK and Ireland.

India-based Hero Enterprise, which represents the business interests of its founder, Sunil Kant Munjal and his family, and European real estate investment and asset management firm Catalyst Capital have together formed Hero Catalyst Hospitality Ventures.

The joint venture will invest in and develop hotels, serviced apartments and hospitality-led projects, initially in the UK and Ireland, and is aiming to develop multiple projects with a significant equity commitment to acquire land and buildings. It will also look to invest alongside other landowners, owners or developers holding opportunities with hospitality potential.

Rob Skelston, head of development for Hero Catalyst Hospitality Ventures, said: "We believe this is an opportune time to expand our hotel development programme, leveraging the experience and expertise at Catalyst Capital combined with the reputation, management strength and credibility of Hero Enterprise."

Julian Newiss, chairman of Catalyst, said: "While working with Hero Enterprise, we are aligning ourselves with one of India's most credible business houses and Hero's considerable business experience will complement our expertise in hospitality development and investment management.''

Sunil Kant Munjal, chairman of Hero Enterprise, which is also a financial backer of Oyo hotel group, said: "We are delighted to return to the United Kingdom through this joint venture with Catalyst Capital… This venture provides an ideal platform to establish a world-class hospitality development business in the region.

"As long-term partners, we aim to bring stability and growth to this hospitality venture while creating value for all stakeholders."

Indian hotel chain Oyo eyes UK expansion >>