Hannah Evans, Investment Director at Redevco, said: “Our value-add Next Gen Stays strategy is an excellent example of Redevco’s focus on repurposing assets to create vibrant places in urban locations. By acquiring and redeveloping strategically located and under-exploited real estate with local character, we create an attractive investment product and make cities more sustainable.” 

The assets are leased to professional, tech enabled hotel operators and redeveloped to create authentic, sustainable, good value accommodation targeting younger travellers. The target consumer base of millennials and Gen Z travellers are currently under-served by the hospitality sector, and this strategy is designed to cater for their demand of more flexible, sustainable and community driven stays. The refurbished hotels will be compatible with Redevco’s mission of making its entire real estate portfolio net carbon neutral by 2040. 

Patrick Brenninkmeijer, Business Development Director at Redevco, said: “Redevco and SFP will now be working to capitalise on the resurgence and growth in the youth tourism and experience travel market and we look forward to creating a professionally managed hospitality portfolio in key cities in the Iberian Peninsula together.” 

The partnership’s dynamic and research driven approach combines the specific requirements of a carefully chosen target market with the lean, technology driven hotel offerings that are being provided by a modern breed of hotel operators. Redevco’s ability to identify value in prime city locations is instrumental in attracting operators focused on room-driven revenues, who can benefit from low fixed costs and competitive average day rates. 

The SFP fund will look to increase its stake in the joint venture through further capital raises to acquire additional pipeline assets.

You can now read the full press release at the link below