Fairtree Hotel Investments
Fairtree Hotel Investments, a division of Fairtree Operational Real Estate, was founded in 2013 and is a specialist hotel investment adviser and manager, predominantly focused on hotel investment opportunities in the UK.
What are active hotel investment solutions?
Fairtree Hotel Investments (FTHI), a division of Fairtree Operational Real Estate, is a specialist hotel investor and asset adviser, focussing on the sourcing, acquisition, repositioning, sale and management of hotel real estate assets, across the UK.
FTHI, which was launched in 2014, is part of the Fairtree group. Since launching, FTHI, has sourced, negotiated and completed more than 30 UK hotel transactions, totalling in excess of £450m.
Our investment strategy is focused on opportunities in the upmarket leisure hotel sector, that require a more active investment approach with an ability to generate long-term enhanced return through a combination of operational profits and capital appreciation.
Through our experienced team of investment professionals, a network of industry specialists and our direct affiliation with Providence Hotels, we provide complete investment life-cycle hotel investment and advisory services that deliver exceptional long-term stakeholder value.
BENEFITS
What we bring to the partnership
01
Active asset and portfolio management
Through our strong industry expertise, specialist teams, and operational experience, we achieve capital and operational value creation within our strategies.
02
Transactional management & due diligence
As seasoned investors in the hotel sector, we have significant experience in managing transactions to a successful conclusion. We can conduct and supervise a full range of diligence work streams both through our in-house expertise and via trusted third parties to identify and manage transactional and operational risk.
03
Deal sourcing and structuring
We have long-standing relationships with a wide network of vendors, owners, brokers, and investors, which gives us deep coverage and insight into various regional sectors. Our flexible approach to deal creation allows us to build structures that adequately manage risk while delivering long-term growth for all stakeholders.
04
Debt and equity raising
Through our deep and wide-ranging industry connections, we are able to design, negotiate and deliver a variety of attractive capital solutions, including equity, senior or subordinated debt, and listed debt to suit investment and risk requirements.
05
Hotel management services
Through our close affiliation with Providence Hotels, an established hotel management company, we offer a range of specific departmental or full-hotel management services, allowing us to improve individual asset performances and unlock value for all stockholders.
Fairtree Hotel Investment Funds
Fairtree Hotel Investments (FTHI), a division of Fairtree Operational Real Estate, is a specialist hotel investor and asset adviser, focussing on the sourcing, acquisition, repositioning, sale and management of hotel real estate assets, across the UK.
- The UK has a sizeable and expanding tourism and hospitality sector, projected to reach approximately £140bn by 2025.
- UK hotels represent a resilient asset class, delivering strong returns across market cycles.
- The fragmented independent hotel market is under pressure, with rising interest rates and inflationary pressures impacting earnings.
- Changing consumer behaviour is driving demand for higher-quality stays, which is not being met due to limited capital investment from financially strained single-site and family-owned operators.
- The Fund will invest in UK hotels, building a portfolio of high-quality, leisure-focused assets.
- The strategy will focus on the strategic repositioning of assets to align with consumer demand, with flexibility for opportunistic acquisitions.
- Value creation will be driven by repositioning individual assets and achieving a broader “portfolio premium”.
- Favourable market conditions providing attractive entry valuations.
- Sizeable target pool of high-potential assets with limited historic capital investment.
- Supportive consumer trends driving demand for higher-quality experiences.
- Experienced investment team with a proven track record in acquiring, repositioning, and operating hotels in the UK.
£ 250 million
Target fund size (Unlevered)
15 % IRR
Target return
7 years +
Fund duration
Status
Open for new investments
- The UK’s prime-regional leisure hotel market presents significant opportunities, particularly in the upscale to upper-upscale segments.
- Mid-yielding hotel businesses offer stable cash flows and strong potential for capital appreciation.
- Expansion and repositioning opportunities create value uplift, allowing for long-term return enhancement.
- A disciplined acquisition strategy focuses on acquiring both hotel real estate and operations, maximising control and financial efficiency.
- Market conditions allow for cash acquisitions, followed by refinancing to a 50% leverage target, optimising capital deployment.
- Focused on prime-regional UK leisure hotel assets in the upscale to upper-upscale segment.
- Acquiring both hotel real estate and operations, leveraging long-term growth potential.
- Cash acquisitions with strategic refinancing (50% leverage target) to enhance investor returns.
- Structured as a closed-ended fund with a five-year capital lock-in period, ensuring a disciplined investment approach.
- Portfolio management by:
- Providence Hotels – a full-service hotel management company and subsidiary of Fairtree Hotel Investments (FTHI).
- Crerar Hotels – an internally managed portfolio and operating brand, optimising asset performance.
- Prime acquisition opportunities in a growing leisure market segment.
- Attractive entry valuations with potential for operational enhancements and strategic repositioning.
- Strong asset management expertise, leveraging two established hospitality brands.
- Proven track record of delivering high returns in UK hospitality investments.
£ 75 million
Net asset value
57 % p.a
Return since inception
Status
Closed for new investments
- The UK’s domestic tourism sector continues to experience strong demand growth, driven by shifting travel patterns and a preference for local leisure experiences.
- High-yielding hotel businesses remain attractive investment opportunities, particularly those with strong cash flows and capital appreciation potential.
- The fragmented independent hotel market presents opportunities for strategic acquisitions at attractive valuations, with many operators constrained by rising operational costs and financial pressures.
- Leveraged acquisitions provide enhanced returns, with assets acquired using a 50% leverage target.
- Targeting high-yielding hotel businesses with positive cash flows and long-term capital appreciation potential.
- Acquiring both hotel real estate and operational businesses to drive value creation and financial efficiency.
- Utilising leverage strategically (50% debt) to enhance investor returns.
- Reinvesting growth into new opportunities, with capital locked in for a five-year period.
- Active asset management through Providence Hotels, a full-service hotel management company and a subsidiary of Fairtree Hotel Investments (FTHI).
- Attractive entry points in a market with limited institutional competition.
- Resilient demand for high-quality leisure accommodations in key UK destinations.
- Disciplined acquisition strategy, leveraging financial structuring for optimised returns.
- Experienced management team with a proven track record in acquiring, repositioning, and operating UK hotels.
£ 20 million
Net asset value
£ 14 % p.a.
Return since inception
Status
Closed for new investments
Meet our team
Kobus Nel
Chairman of Investment Committees
Joe Bester
Real Estate Portfolio Manager
Nic Ross
Real Estate Portfolio Manager
CC Nel
Real Estate Portfolio Manager
Sybrand Engelbrecht
Real Estate Investment Specialist
Pieter Nel
Real Estate Finance Specialist
Kobus Nel
Chairman of Investment Committees
Started in the investment industry
joined Fairtree
Joe Bester
Real Estate Portfolio Manager
Started in the investment industry
joined Fairtree
Nic Ross
Real Estate Portfolio Manager
Started in the investment industry
joined Fairtree
CC Nel
Real Estate Portfolio Manager
Started in the investment industry
joined Fairtree
Sybrand Engelbrecht
Real Estate Investment Specialist
Started in the investment industry
joined Fairtree
Operational Real Estate
Garenmarkt | Leiden
These stylish apartments are suited for students who have a need to be in close proximity to the city. The apartments are luxurious, modern and functional, offering ideal accommodation.
Pieter Nel
Real Estate Finance Specialist
Started in the investment industry
joined Fairtree
Our portfolio
Our investments
Fairtree Hotel Investments has built a strong and growing portfolio in the UK hospitality sector. We invest in high-quality assets across key locations, partnering with leading operators to deliver strong, sustainable performance.
20
Properties
985
Keys
€54.9m
Turnover
Our partners
Our hotel management partnerships range from full hotel management services to various digital hotel agency strategies. Through our close affiliation with our operator partners, we offer customised management and digital services for both Fairtree-owned hotels and third-party hotel operators.
Providence Hotels
Providence Hotels is an innovative, independent hotel management company specialising in bespoke hotel offerings with a focus on full-service hotel management and strategic hospitality advisory.
COLLABORATING
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Visit us
2nd floor, 10 Bridge Street,
Bath, BA24AS,
United Kingdom
Email us
Fairtree Hotel Investments
[email protected]
[email protected]
General Enqiries
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