Tristan Capital Partners acquires Easyhotel

Budget hotel chain Easyhotel has been acquired by Tristan Capital Partners’ discretionary fund, European Property Investors Special Opportunities (EIPSO 6), in a deal worth over €400m (£336m).

The transaction sees 100% of Easyhotel’s shares come under the ownership of the London-based real estate investment firm.

Prior to this, 50% of the hotel group’s shares were owned by Bidco, a consortium of ICAMAP and Cadim Fonds, following a £138.7m takeover in 2019.

Over the past three years, Easyhotel has evolved from being a UK-focused, asset-light business to a company that now generates two thirds of its total revenue from outside of the UK.

In its most recent set of year-end results, the group posted £91.2m in system sales – up 4% from the previous year – and £6m in low-carbon investments.

Following the Tristan Capital Partners deal, Easyhotel will continue to bolster its presence across Europe, targeting gateway cities in Spain, Portugal and France.

The group is currently building new hotels in Barcelona, Valencia, Alicante and Geneva, having also secured £80m in refinancing.

Karim Malak, chief executive of Easyhotel said: “Over the past three years, we have successfully transformed Easyhotel into a strong pan-European owner and operator...we’ve continued to build momentum, with record levels of market share, guest satisfaction and direct bookings driving our highest-ever system sales.

"With Tristan Capital Partners now fully on board, we’re entering an exciting new chapter. Their sector expertise and capital backing come at a time of rising demand for affordable, low-carbon hotels and will help accelerate our expansion across Europe’s most dynamic gateway cities.”

Kristian Smyth, managing director, investments, at Tristan Capital Partners, added: “The Easyhotel brand perfectly complements our growing platform with a compelling offering that delivers great value in centrally located destinations. We look forward to significantly growing the Easyhotel platform as part of our long-term strategy in the sector.”

Easyhotel was founded in 2004 and has an estate of roughly 50 hotels comprising 16 hotels and 32 owned and leased properties.

It was one of the spin-off brands from Sir Stelios’ EasyGroup, best known for its budget airline EasyJet, with its first hotel launching in London’s Kensington. 

Tristan Capital was advised by international law firm BCLP.