LaSalle Investment Management said it is launching a €500 million pan-European “urban hotel aggregation strategy” via a strategic partnership with digital hotel operator NUMA Group.
“The strategic partnership, forming part of LaSalle’s growing Value-Add Investments business line, will seek to acquire, refurbish and operate vacant or soon-to-be-vacant urban hotels, serviced and extended stay apartments, boutique hotels, as well as conversion projects from non-institutional or unbranded owners and owner-operators in Western European A-cities,” said LaSalle.
“Under the strategic partnership, these properties will be designed, managed, and operated by NUMA Group through its proven tech-enabled operating model.
“The strategy will target properties in prime city-centre locations, providing an attractive exit solution for their current owners. A pipeline of 15 city-centre assets in the UK, Spain, Italy, and the Netherlands representing over €450m in value has already been identified.
“The refurbishments are expected to take 6-18 months and will deliver rooms for short-, medium-, and long-stays, providing flexibility to optimise occupancy.
“LaSalle and NUMA Group will look to integrate various sustainability standards, including hybrid ventilation and water recycling strategies, which are intended to secure Excellent or Outstanding BREEAM assessments and help achieve net-zero carbon status across their portfolio by 2050.”
LaSalle Investment Management manages $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021.
Michael Zerda, Head of Debt & Value-Add Strategies at LaSalle, said: “This venture exemplifies the growing symbiosis between technology and real state.
“We are excited to help improve the urban short stay, long stay hospitality experience alongside a strong tech partner like NUMA.”
Blake Loveless, Head of Value-Add Investments at LaSalle, said: “As Covid restrictions ease across Europe, tourism-led markets in leisure travel destinations, as well as European city centres more generally, will continue to rebound.
“This strategic partnership with NUMA will capitalise on this by providing a trusted, high-quality, and tech-enabled product with seamless consumer experience in markets that have fragmented hotel stocks.”
Dimitri Chandogin, President, NUMA Group, said: “The strategic partnership further strengthens NUMA’s position as the leading tech enabled alternative accommodation provider.
“Our clear goal is to establish NUMA as the dominant solution provider for a completely new generation of hotels and short stay accommodations in Europe.
“NUMA’s strategic partnership with LaSalle is another milestone in institutionalising the alternative accommodation segment and offering a professional investment solution for the fragmented European hospitality market, especially for owner operators.”
Philipp Rohweder, Director Real Estate, NUMA Group, said: “Our partnership with LaSalle underscores our ability to offer institutional fully integrated and seamless tech-enabled hospitality solutions.
“We expect the hospitality sector to continue benefiting from on-going mega trends, consumer shifts, as well as the overall post-pandemic recovery.
“With LaSalle, we have found a partner with strong real estate experience and network across Europe with whom we will continue our successful growth story in the European hospitality sector.”