Capita Symonds – the UK property and infrastructure consultancy – has announced a partnership with hotel developer Oxford Hotels and real estate investment vehicle Equiture to specifically target investment and asset management opportunities across the £10bn hotel sector.
The partnership will focus on outright acquisitions of hotel investments and developments with equity partners, as well as opportunities to work with banks and other stakeholders to asset manage and turn around hotels in their ‘workout’ portfolios.
Capita Symonds will oversee the full design and delivery of hotel refurbishments and developments while a team led by Chris King of Equiture and Simon Wood of Oxford Hotels will be responsible for securing opportunities and enhancing the profitability of hotel investments through active asset management. This will include acquiring and financing – on behalf of third party investors – on and off market hotel projects, negotiating new operator agreements, co-ordinating refurbishments and development projects, and driving operational performance. Critically, Capita Symonds – part of Capita plc – is well placed to help drive down the hotels’ operational costs through economies of scale.
Jonathan Goring, Managing Director, Capita Symonds, said:
“We’re delighted to be working with two well-known market figures. The partnership will originate, finance, manage and operate hotel investments and developments throughout the UK in conjunction with Capita Symonds’ specialist cost procurement business in a cohesive and pro-active way not previously seen in the sector. Our hotel offering is intended to be the first of a series of such ventures, designed to create work in non-traditional ways.”
Chris King, Equiture, said: “Capita Symonds is a market leading asset management business with huge depth of resource and reach. With this backing within the sector, this is a highly investable platform.”
Simon Wood, Oxford Hotels, said: “Our unique model will grow hotel portfolio values through revenue enhancements and cost savings. As the market improves and travel budgets increase, our portfolios should be well placed to benefit.”
Tim Smith, HVS, a leading global specialist hotel valuation, consulting and brokerage firm commented: “The partnership offers both a short term and long term solution to owners and financiers and a real alternative to insolvency and the huge impact on value. Its innovative product should be a highly attractive option for asset owners in the market.”