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TPG
Real Estate Acquires A&O Hotels and Hostels
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London,
UK & Fort Worth, TX – January 2017 / Newsmaker Alert / TPG
Real Estate, the real estate platform of leading global private investment
firm TPG, announces that it has completed the purchase of A&O
Hotels and Hostels (“A&O”), the largest fully integrated, privately-owned,
hostel platform in Europe. The transaction will help A&O expand and
enhance its operations, strengthening its position as one of Europe’s leading
budget hotel investment, development, and management groups.
Under
the agreed terms, TPG Real Estate will acquire 31 leased and owned assets,
with more than 20,000 beds located primarily in Germany. Key members of
A&O’s management team, including CEO Oliver Winter, will continue to
lead the company after the transaction.
Oliver
Winter, CEO of A&O, commented: “We founded A&O almost twenty years
ago in Berlin, and it has grown into one of the leading German budget hotel
operators. With TPG’s global presence and expertise in buying and building
platforms, I believe it is the ideal partner to strengthen and expand our
business across Europe.”
Anand
Tejani, Partner at TPG Real Estate, commented: “A&O is a strong operator
that is well positioned to capitalize on favorable global and European
travel trends. Over the last number of years the sector has experienced
rapid growth, particularly due to an increase in travelers in search of
affordable, reliable, lodging options. Oliver has built a great business
that addresses this demand. We are excited to partner with A&O to expand
and enhance the platform.”
Michael
Abel, Managing Director at TPG Real Estate, commented: “Partnering with
A&O presents the unique opportunity to invest in one of Germany’s few
leading, privately-owned lodging platforms. Given A&O’s impressive
business track record, we see an opportunity to create a pan-European company
of scale in a fragmented market that continues to experience robust growth.
We look forward to working with the A&O team to continue the growth
and success of the business.”
TPG
Real Estate is the dedicated real estate platform of TPG, a leading global
private investment firm that manages more than $74 billion in assets across
a wide range of asset classes. The TPG Real Estate platform includes both
TPG Real Estate Partners, its equity investment platform, and TPG Real
Estate Finance Trust, its debt origination platform. Together, the platforms
manage more than $7 billion in assets.
Financial
terms of the transaction were not disclosed.
About
TPG Real Estate
TPG
Real Estate (“TPGRE”) is the real estate platform of TPG, a leading global
private investment firm with more than $74 billion of assets under management
and 17 offices around the world. TPGRE includes TPG Real Estate Partners,
its equity investment platform, and TPG Real Estate Finance Trust, its
debt origination and acquisition platform. Collectively, the two platforms
manage assets in excess of $7 billion. TPG Real Estate Partners has invested
or committed to invest approximately $3.7 billion of equity in North America
and Europe since 2009 and focuses primarily on investments in property-rich
platforms and companies. TPG Real Estate Partners leverages the full resources
of TPG in its value-added approach to investing to optimize property performance
and enhance platform capabilities. TPG Real Estate Finance Trust manages
an approximately $3.2 billion commercial real estate loan portfolio, and
originates and acquires senior real estate loans across a broad spectrum
of asset classes in North America. For more information please visit www.TPG.com.
Media
Contact:
TPG
Real Estate
Luke
Barrett
212-601-4752 |