RoundShield provides financing to Kabannas for the purchase of a hotel in Edinburgh | News

Private investment firm RoundShield has provided financing to Kabannas, a new European hybrid hotel platform, to acquire Hayweight House in the Scottish capital, its fourth acquisition in nine months.

Hayweight House, located at 23 Lauriston Street in Edinburgh, is to be transformed into a “new format hybrid hotel, offering a combination of innovative room and bed products over five floors,” Kabanna said.

With funding and support from RoundShield, the Kabannas platform is targeting acquisitions worth over €100 million focused on micro-sites across Europe.

Kabannas says its strategy is to develop a hybrid hotel brand across 15 locations in European capitals and cultural capitals to serve the underserved “ultra-affordable” hospitality market.

According to Kabannas, this segment accounts for over 35% of all global travel and generates around €200 billion in annual spending, but on average represents less than 10% of the available accommodation offer in gateway cities.

Kabannas directors added that the platform’s acquisition profile is “very flexible” and “focuses on repositioning low-quality hotel or office properties with an area of ​​2,000 sq m. up to 10,000 sq m, located in European gateway cities.

The value of acquisitions typically ranges from EUR 10 million to EUR 50 million, and asset acquisitions are fully financed by Kabannas and RoundShield, without the need for additional external financing.

In addition, Kabannas acts as buyer, developer and operator, “thus providing greater certainty to the transaction,” it said.

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