Student Hotel eyes new European bases
The Student Hotel announces major capital increase to fund its European expansion strategy in 2015 and beyond
The Student Hotel has announced a capital increase and equity commitment of €150 million, funded by Perella Weinberg Real Estate.
The injection of funds will enable the Amsterdam-based student accommodation provider to expand significantly further into Europe.
The capital increase will allow The Student Hotel to address a shortage of accommodation across Europe to meet local and international student needs, through the accelerated roll-out of the brand’s accommodation model.
The Student Hotel currently operates four properties in the Benelux region. The capital increase will enable the company to expand into a major European student housing and hospitality brand by developing, owning and operating hotels in leading university cities that attract international students, young professionals, and youth travellers.
Property locations currently include Amsterdam, Rotterdam, Liège and The Hague; the expansion strategy will target, among others, sites in Paris, London, Madrid, Barcelona, Berlin, Frankfurt, Brighton, Edinburgh and Dublin.
The first acquisition in the partnership is the Trouw/Parool Tower in Amsterdam, a former newspaper headquarters, which will be converted into a flagship 574-room hotel, with a range of facilities including gym, classrooms, offices, three on-site restaurants and a club. The 24,000 m2 property is located five minutes from Amsterdam city centre, between the campuses of the University of Amsterdam and the Amsterdam University of Applied Sciences.
This was recently followed by a new deal to acquire a property in Eindhoven, The Netherlands. The new build, 80m high property, will have 400 bedrooms, café, restaurant, fitness centre, study rooms and auditorium. Construction on the €30m project will start in March 2015 with completion date set for August 2016.
A growing population
According to the OECD, the population of internationally mobile students more than doubled from 2.1 million in 2000 to nearly 4.5 million in 2011. The total number of international students is set to rise to 7-8 million by 2020, exacerbating an already profound shortage of student accommodation.
The Student Hotel will operate a total of 2,200 rooms by 2015 and aims to be operating 10,000 by 2020 across Europe.
Charlie MacGregor, Founder and CEO of The Student Hotel commented: “We are thrilled about our partnership with Perella Weinberg Real Estate. The movement of students between countries has become a global phenomenon. The growing number of international students deserve better accommodation options, no matter where they go in Europe, and it’s great to work with an investment partner that shares our vision to roll-out high quality and community-driven student and hotel accommodation across Europe.”
Perella Weinberg Partners is an independent, privately owned financial services firm that provides asset management and corporate advisory services to clients around the world.