Qbic Hotel, London.
Cerberus Capital Management has acquired London’s Qbic Hotel from Bridges Fund Management.
Bridges first invested in Qbic in 2012, via its Sustainable Growth Fund III.
This investment allowed for the transformation of a disused 56,000 sq ft office building in the Whitechapel district of London into a stylish boutique hotel, offering 171 rooms of affordable accommodation to travellers from as little as £69 per night.
Since opening in 2013, Qbic has enjoyed consistent year-on-year revenue growth; trading for the first quarter of this year was up 11% on the equivalent period last year. It has also maintained a top 10% ranking on TripAdvisor, and in 2016, received a Trip Advisor GreenLeaders Platinum Award.
At the time of Bridges’ investment, Whitechapel was one of the 2% most underserved areas of the UK. Qbic has since drawn thousands of visitors to the area, paid out nearly £3m to local suppliers, created nearly 50 jobs, and actively supported local charities.
Lee Millstein, global head of real estate at Capital Management, said: “Qbic Hotels is a forward-thinking, eco-conscious, urban 3-star-plus hotel offering that can act as a disruptive player in the limited service hotel space in Europe.
“This transaction represents an opportunity for us to work closely with Qbic Management while also applying our substantial experience in the global hospitality sector to a new growth platform.
“Together, we plan to create long-term value in the business through creative real estate solutions and by organically scaling the platform and portfolio across multiple cities.”
Julie Fawcett, managing director of Qbic, added: “Qbic has thrived under Bridges Fund Management progressing from a start up with potential to a tested, fully fledged hotel concept with the team to make it fly.
“Our eco-friendly, design-led and affordable brand proposition has demonstrated consistent above market KPIs and margins supported by the Qbi integrated bed and bathroom unit.
“The Qbi’s crowd pleasing, quirky design hides a hyper-rational low-cost real estate conversion solution that fits with Cerberus’ vision for the brand’s expansion in the major markets of the U.K. and Europe.”
KPMG Corporate Finance advised Bridges on the sale, while Addleshaw Goddard provided legal counsel.
BQ’s commercial property updates are supported by specialist lender Together, which provides funding to businesses and property investors nationwide. With over forty years’ experience in the financial services industry, Together offers short-term finance, auction finance, buy-to-let, residential and commercial mortgages and secured loans.
For more information visit www.togethermoney.com
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