Point A Hotels group to double in size following £420m acquisition

The Wellcome Trust has sold its shareholding in Point A Hotels to a Tristan Capital Partners fund for £420m, with the new group of shareholders planning to double the size of the portfolio.

Tristan Capital Partners’ fund European Property Investors Special Opportunities 6 (EPISO 6) acquired the majority shareholding in Raag Hotels, which owns Point A Hotels.

The transaction will provide an exit for the Wellcome Trust, while other shareholders Queensway, a company associated with the Jivraj family, and a company owned by Naguib Kheraj, will remain as minority partners. The shareholders have committed significant additional equity to fund the next phase of growth of Point A Hotels with plans to acquire two to three further hotels per year.

The Point A portfolio comprises 1,520 rooms across 10 hotels. Under the new partnership, Queensway will co-invest and act as hotel operator, asset manager and development partner for future sites.

Kristian Smyth, executive director, investments at Tristan Capital Partners, said: “Our ambition is to materially grow the platform in the UK and Ireland alongside the Queensway team with two to three acquisitions per year with the objective of doubling the portfolio in the medium term.”

Naushad Jivraj, chief executive of Queensway said: “We are delighted to form this new partnership with Tristan Capital Partners’ fund to continue to significantly grow the Point A platform…

“Wellcome Trust have been an excellent partner to work with over the past eight years and we are pleased that this transaction has produced a successful outcome for them.”

Lisha Patel, managing director, investment division at the Wellcome Trust, said: “Our participation in the significant growth and evolution of the Raag Hotels business has produced strong returns over the life of our investment. The strength and quality of the Point A Brand, the hotel portfolio and the Queensway management team attracted very keen interest from institutions to acquire our shareholding and we are confident the business will continue to perform well and deliver excellent guest experience under new ownership.”

EPISO 6 was advised by BCLP, Maples, Brodies, PWC, Savills, Artelia and Longevity. Raag Hotels was advised by CBRE, Eastdil, Derek Gammage, DLA Piper, BDO and Voisin Law. Queensway was advised by GSC Solicitors.

Tristan Capital Partners is an employee-owned real estate investment manager, which also bought the Qbic Manchester last year and rebranded the property as a Yotel.