Thai-based hotel business Hua Kee has acquired a one-third share in Cycas Hospitality, the owner and operator of extended-stay hotels in the UK, for an undisclosed sum.
The new investment will enable Cycas to expand its presence as a white-label operator throughout Europe. It currently manages properties on behalf of Starwood Capital, M&L Hospitality, and CLS Holdings under a number of extended stay brands including InterContinental Hotel Group's Staybridge Suites and Marriott's Residence Inn, as well as hotels brands Holiday Inn and Hyatt Place.
Cycas Hospitality's turnover of managed properties is forecast to expand over the next two years from £29m to over £75m. Its current portfolio of 3,000 will increase to 10,000 in the next five years.
Eduard Elias (left), co-founder of Cycas Hospitality's co-founder, said: "Extended-stay accommodation, which includes serviced apartments and aparthotels, is a new and dynamic asset class in Europe and is evolving as a major subsector in the hotel industry as leisure and business travellers increasingly seek and value flexibility and independence. We are delighted to welcome Hua Kee as investors and partners."
Erik Jacobs (centre), representing Hua Kee, added that the investment will enable Cycas to move into Europe, which is "largely underdeveloped and undersupplied in the extended-stay sector", compared to the US.
"Cycas Hospitality is known for its exceptional customer service," he said. "This passion for wowing its customers, its clear market-leading position in this exciting, evolving market, together with its ambitious plans in Europe, made it a highly attractive investment proposition."
Hua Kee operates hotels in south east Asia, Australasia and Europe, from full service conference hotels under Narai Group to smaller boutique hotels, resort hotels, and serviced apartments.
Cycas Hospitality to manage Starwood Capital Group's extended-stay portfolio >>
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