Akkeron Group, an investment business formed in 2008 by James Brent, previously Global Head of Real Estate & Lodging of Citi's investment bank, announces today the launch of Akkeron Hotels, a newly formed company owned by his family interests and those of Colin Johnston.
In addition, Akkeron Hotels announces that it has established its operational management platform through the acquisition of the core of the Folio hotel business together with leasehold interests in eight hotels. These include: Makeney Hall, Belper, Derbyshire; The Yorkshire Hotel, Harrogate; The Caledonian Hotel, Oban; Cedars Health and Leisure Club, Richmond-upon-Thames; and the Harte & Garter Hotel & Spa in Windsor.
Akkeron Hotels intends to build a portfolio of up to 150 regional hotels across the UK. It is expected that Akkeron's interests in these will comprise a blend of ownership, leases and management contracts. Conversations are being advanced with a number of hotel groups, landlords and banks.
The transaction is in line with Akkeron Group’s strategy of combining its corporate finance, financing and real estate expertise with 'best in class' operating teams to drive value from real estate-anchored operating businesses.
Folio is a group of high-quality and well-run hotels that continues to outperform the overall regional hotel market. All the hotels acquired by Akkeron will continue to operate as usual but on a robust financial footing.
Commenting on the launch, James Brent, Chairman of Akkeron, said: “The regional UK hotel market provides a real opportunity for a company such as ours which combines access to equity and debt finance, and management expertise and integrity.
“Akkeron Hotels has been set up to capitalise on current market conditions in the sector and the agreement with Folio has enabled us to synthesise Folio’s first class management team with our financial/financing expertise. Comprising a core team of professionals with skills and experience across operational hotel management, acquisitions, disposals, financing, legal and corporate finance, we believe that Akkeron offers a high-quality platform from which to develop a substantial UK-focused hotel business.“
For further information, please contact:
Akkeron Group
James Brent
Marten Foxon
Tel: 020 7647 6670
Akkeron Hotels
Matthew Welbourn
Tel: 07771 756300
Nick Greaves
Tel: 07825 277120
Financial Dynamics
Ben Foster
Stephanie Highett
Tel: 020 7831 3113
NOTES TO EDITORS
Information on Akkeron Group LLP
Akkeron Group LLP was formed in 2008 by James Brent, previously Global Head of Real Estate & Lodging Investment Banking at Citigroup, with a focus on real estate-based operational businesses. Marten Foxon is Akkeron’s Head of Hotels and Leisure.
Akkeron’s key areas of activity include:
Management-intensive real estate portfolios e.g. hotels, residential
Urban regeneration focused on the South and South West of the UK
Large-scale agriculture in emerging markets.
Akkeron pursues a partnership approach to its investment programme, leveraging its skills across real estate, development, financing and corporate finance.
Background to Folio Hotels
Folio Hotels offers a range of hotels with individuality and character. They serve both business and leisure customers with a 60:40 mix, respectively.
Many of the hotels have been re-positioned following an extensive capital expenditure programme, and now offer four-star equivalent accommodation in an independent style.
Gross operating profit performance at Folio grew in the 10 months to October by +2.4% against an industry average decline of over -14% (TRI Provincial Stats). In addition yield declines for the last quarter were half the industry average at -5.6%
The Folio management team is led by Matthew Welbourn, Managing Director. Prior to joining Folio, Matthew had worked at Hilton and Queens Moat House Hotels. Alan Murray is Finance Director who before joining the Folio team was CFO of Noble House Leisure which operated 30 restaurants predominantly in the London area. Nick Greaves is Sales and Marketing Director. Prior to joining Folio, Nick had worked with Expotel, the UK’s leading independent travel management company and Hanover International Hotels.
The leasehold interests in the following businesses have been acquired by Akkeron Hotels:
Belper, Derbyshire, Makeney Hall
Exeter, Buckerell Lodge
Harrogate, The Yorkshire Hotel
Glencoe, Ballachulish, The Isles of Glencoe Hotel
Glencoe, Ballachulish, The Ballachulish Hotel
Oban, The Caledonian Hotel
Richmond-upon-Thames, The Richmond Gate Hotel
Richmond-upon-Thames, Cedars Health and Leisure Club
Windsor, The Harte & Garter Hotel & Spa
Colin Johnston
Colin Johnston, who heads a group of companies under the name Clear (including Clear Healthcare Group), has a number of commercial and residential property interests across the UK.
Akkeron Group LLP is a limited liability partnership (registered in England and Wales number) Registration No. OC338707 and Registered office: 152-158 Richmond Hill, Richmond-upon-Thames, Surrey TW10 6RP
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