Michels launches £200m hotel investment fund

02nd March 2015

Sir David Michels has today announced the launch of a new £200m fund, exclusively targeting investments in the European hotel sector. The fund will be managed by Michels & Taylor, and will primarily focus on the provincial UK market, though targeted acquisitions in Continental Europe will also be considered.

Sir David, ex-Hilton chief and one of the world’s most experienced hoteliers, has secured all the funds for this new venture privately and will be investing as soon as appropriate assets are identified.

The aim of the Fund will be to find individual assets which, with better management can deliver significant trading improvements in the short to medium term. Hotels will ideally be a minimum of 100 bedrooms with a value range of between £10m & £20m per asset. Whilst small clusters of 2-3 hotels might be considered, portfolio transactions are not part of the investment strategy.

Sir David comments:

“I am extremely pleased to have secured the necessary funds for this new venture. The period of buying distressed assets in the UK hotel sector has gone for the time being and we are now in a period of driving value through better management. With Michels & Taylor now establised as one of Europe’s leading hotel managemnt and consulting businesses, we have the team to deliver these improvements and generate value for our investors”.

Michels & Taylor will be unaffected by the new Fund, with the investment vehicle sitting entirely outside the existing company, and supported and treated as a client.

Hugh Taylor, CEO of Michels & Taylor comments:

” This is wonderful news for our company, and the team are very excited to be supporting the new Fund in this way. It will allow M&T to substantially grow its management contract business whilst maintaining the high level of focus and support we give, and will continue to give to our existing clients”.

For more information, please contact:
Lisa Richards on lisa.richards@michelsandtaylor.com or via (0208) 905 2500