Asset manager Schroders has agreed a deal to acquire European hotels investment and management business Algonquin, which will bolt on a hotel portfolio worth €1.8bn (£1.6bn).
The integration of both businesses will begin with immediate effect. Further financial details relating to the deal were not disclosed.
Algonquin was founded in 1998 and manages assets across Europe that comprises more than 7,500 hotel rooms.
Its hotels are managed through both Algonquin’s own brands and franchises such as the Sheraton, Marriott, Hyatt, Radisson and Sofitel.
Schroders, which operates in sectors including offices, retail, logistics, self-storage and large multiple-use sites, will take on “various co-investments” alongside Algonquin’s existing client base.
Algonquin chief executive Frederic de Brem will join Schroders as head of its new real estate hotels division.
Duncan Owen, global head of real estate at Schroders, said its clients, which include “some of Europe’s largest financial institutions” was a key driver behind the acquisition, as well as the “experience of its employees”.
He added: “Our strategy has been to concentrate on what we define as winning cities which benefit from key structural themes of urbanisation, changing demographics, technological innovation, the shifting demand from Asia and strong infrastructure.”
After the deal, Schroders’ real estate team will operate with 13 offices internationally.
Schroders turned to CBRE’s hotels division for real estate and specialist hotel advice, as well as financial adviser d’Angelin & Co, legal adviser Allen & Overy and PwC for finance and tax due diligence representation. The vendors were advised by Rothschild and law firm Gide.
