Resident Hotels Ltd (RHL), the hotel operating company behind highly-rated The Resident hotel brand confirms that it will add Sleeperz Hotels to its stable later this year. The two brands will work as distinctive different hotel businesses.
RHL’s majority investor, Mactaggart Family & Partners has acquired a controlling stake in the distinctive premium budget brand, introducing additional funding alongside longstanding investors who will remain in the business.
RHL’s CEO, David JM Orr, has started working with David Myers, CEO, Sleeperz Hotels and his team during a transition period, with RHL expected to take over the running of the brand through hotel management agreements, in the late summer/early Autumn.
Mactaggart Family & Partners recognises the growth potential and has earmarked additional funds to expand Sleeperz including through management contracts, targeting city-centre locations.
Sleeperz Hotels, which was launched by Myers in 2008, builds and operates distinctive premium budget hotels close to mainline rail stations in Cardiff, Newcastle, Edinburgh and Dundee.
Orr said: “I have great respect for David’s achievements. Sleeperz has led the way in the sector; combining distinctive design, a compelling offer and strong core values to create an independent premium budget hotel business with real appeal to guests.
“The brand has an underlying authenticity that eludes many bigger competitors and that’s really interesting for us and for investors, who are drawn to distinctive, well-run brands. We look forward to engaging with property owners and institutions as well as securing sites direct as we expand the brand and build on David’s innovation.
“There are aligned values and synergies between Sleeperz and The Resident as a platform, as well as significant differences, and this brand gives us, as Resident Hotels Limited, the opportunity to access more destinations in the UK. The current Sleeperz portfolio is very attractive, with Cardiff, Newcastle and Dundee all striking buildings, while Edinburgh is more classical.
“As one of the founders of City Inn, I can see the incredible potential this section of the market affords creative, independent hoteliers. It is exciting to be working with Sleeperz and we are really looking forward to supporting the team.”
David Myers said “This is positive news for Sleeperz as it means we have two supportive principle investors who are prepared to invest in and grow the business with additional operational expertise through Resident Hotels Ltd”.
Mactaggart Family & Partners has acquired Costain’s and Connection Capital’s stakes in the business, alongside the shares held by Sleeperz management. The group has also invested additional funding, alongside André Hoffmann, Sleeperz remaining principal investor and vice chairman of Roche Holding Ltd.
William Laxton, CEO, Mactaggart Family & Partners, added: “Sleeperz Hotels is a good fit with our investment in RHL and underlines our faith in the hotel sector and city-centre hotels in particular.
“We believe there is great scope for expansion in vibrant city hubs and look forward to working with the team at Sleeperz Hotels to grow this high-quality brand.”
RHL has expanded under Mactaggart Family & Partners and last year announced its sixth location, with a new site in Edinburgh due to open in 2024. Resident Hotels plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years. Growth plans for Sleeperz will be announced in due course.