Amsterdam, Netherlands; 14 January 2019; APG and GIC Real Estate are pleased to announce the establishment of a jointly owned specialist European hotel investment vehicle, Archer Hotel Capital B.V. (“Archer Hotel Capital”). This follows the acquisition of Host Hotels & Resorts’ (“Host”) minority Limited Partner and General Partner interests in the European joint venture, which successfully concluded on 21 December 2018.
Archer Hotel Capital will be headquartered in Amsterdam and will also maintain an office in Central London. All former European-based employees of Host have transferred to the new platform and selective additional hires will be made during 2019 to further strengthen the team. The shareholders intend to commit €300m in additional equity to the vehicle to capitalise on opportunities to further enhance one of the best quality portfolios of its type in Europe. The Archer Hotel Capital portfolio currently comprises 11 hotels located in major cities across Western Europe with a gross asset value of circa €2bn.
Lee Kok Sun, Chief Investment Officer, GIC Real Estate said “This consolidation reflects our confidence of longer-term European business and tourism prospects, and enables us to scale up exposure to a portfolio we know well. We will continue to look out for opportunities to acquire high quality assets that deliver commensurate risk-adjusted returns over the long term. We look forward to working with the management team and playing an active role in the strategic direction of the vehicle.”
Robert-Jan Foortse, Head of European Real Estate, APG said “We believe that European hotel real estate provides a compelling investment case for us, and for our pension fund client ABP, and we are pleased to have secured the opportunity to increase our exposure to a portfolio of institutional quality assets in prime locations across the continent. We believe that Archer Hotel Capital will be uniquely positioned in a European context, with its long-term horizon and high-quality capital sources allowing it to unlock complex investment and value enhancement opportunities.”
Should you have any questions regarding Archer Hotel Capital, please contact:
Director, Portfolio & Fund Management