APG and GIC Take a Substantial Stake in The Student Hotel

Posted on 06/21/2022

The Student Hotel (TSH), APG Asset Management, Aermont Capital, Charlie MacGregor and GIC Private Limited have reached an agreement as part of which GIC and APG will acquire a substantial stake in TSH and commit to invest to fuel further expansion for the hybrid hospitality leader, subject to customary regulatory approvals. The transaction values The Student Hotel, including assets currently under development, at €2.1 billion.

The deal sees APG and founder Charlie MacGregor increase their current stake in TSH. APG first invested in TSH in 2015. MacGregor and Aermont Capital entered into business in 2014 after MacGregor opened the first The Student Hotel in 2012. GIC now joins as a new investor.

TSH’s hybrid hospitality model, combining student accommodation, hotel rooms, co-working and meeting spaces, bars and restaurants, worked well during the COVID-19 pandemic as TSH was able to substantially increase room allocation towards students when leisure and corporate travel dramatically reduced, thereby achieving strong occupancy rates and remaining cash-positive.

With APG and GIC’s commitments, TSH is able to accelerate its growth strategy to expand into key European cities and grow its presence to 50 hotels from 25 hotels under ownership today, of which 15 are currently operational and three are opening in 2022, in Madrid, Barcelona, and Toulouse.

The transaction is subject to approval from the relevant regulatory authorities.

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