Resident Hotels owner buys Sleeperz
The majority investor in Resident Hotels (RHL), the hotel operating company behind the Resident hotel brand, has acquired a controlling stake in Sleeperz Hotels.
Mactaggart Family & Partners plans to provide additional funding to the brand, alongside longstanding investors who will remain in the business. Both Resident and Sleeperz will remain as different hotel businesses.
Sleeperz, which was launched by David Myers in 2008, builds and operates budget hotels close to mainline rail stations in Cardiff, Newcastle, Edinburgh and Dundee.
Mactaggart has earmarked additional funds to expand Sleeperz including through management contracts, targeting city-centre locations.
Mactaggart has acquired Costain's and Connection Capital's stakes in the business, alongside the shares held by Sleeperz management. The group has also invested funding alongside André Hoffmann, Sleeperz' remaining principal investor and vice chairman of Roche Holding.
RHL's chief executive, David Orr, has started working with Myers, chief executive of Sleeperz, and his team to oversee a transition period, with RHL expected to take over the running of the brand through hotel management agreements in the late summer or early autumn.
Orr said: "I have great respect for David's achievements. Sleeperz has led the way in the sector; combining distinctive design, a compelling offer and strong core values to create an independent premium budget hotel business with real appeal to guests.
"The brand has an underlying authenticity that eludes many bigger competitors and that's really interesting for us and for investors, who are drawn to distinctive, well-run brands. We look forward to engaging with property owners and institutions as well as securing sites direct as we expand the brand and build on David's innovation.
"There are aligned values and synergies between Sleeperz and the Resident as a platform, as well as significant differences, and this brand gives us, as Resident Hotels, the opportunity to access more destinations in the UK… It is exciting to be working with Sleeperz and we are really looking forward to supporting the team."
Myers said: "This is positive news for Sleeperz as it means we have two supportive principle investors who are prepared to invest in and grow the business with additional operational expertise through Resident Hotels."
William Laxton, chief executive of Mactaggart Family & Partners, added: "Sleeperz Hotels is a good fit with our investment in RHL and underlines our faith in the hotel sector and city-centre hotels in particular.
"We believe there is great scope for expansion in vibrant city hubs and look forward to working with the team at Sleeperz Hotels to grow this high-quality brand."
RHL has expanded under Mactaggart Family & Partners and last year announced its sixth location, with a new site in Edinburgh due to open in 2024.
Resident Hotels plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years. Growth plans for Sleeperz will be announced.
