Hospitality operator Bob W and joint venture partner Osborne+Co Investment Management (OCIM) have launched a £120m equity raise to acquire and repurpose hotel and office assets into high-quality, short-term serviced apartments.
The value-add fund will target obsolete or underperforming existing assets in key European markets including Ireland, Portugal, Spain, Poland and the UK.
The joint venture intends to transform 20 to 25 buildings into 1,500 to 2,000 modern apartments and is targeting a GDV in excess of £400m for its initial development pipeline. The partnership is actively seeking an investment partner and expects its first assets will be operational within 18 months.
Niko Karstikko, co-founder of Bob W, said: “This strategic partnership marks a major milestone for Bob W, enabling us to merge our cutting-edge, tech-driven hospitality solutions with Osborne+Co’s extensive expertise in real estate development.
“Together, we aim to transform underutilised spaces into vibrant, high-quality serviced apartments that meet the evolving needs of modern travellers. This partnership will enable us to deliver not only significant value for stakeholders, but also an authentic five-star hospitality experience for our guests as we continue to build a pan-European household name as the new elevated standard of hospitality for the next generation of travellers.”
Denis McGowan, partner at Osborne+Co, added: “Partnering with Bob W on this venture is a remarkable opportunity to harness the current surplus and availability of assets in the office sector and underinvested assets in the hospitality sector in the UK and key European markets. By repurposing hotels and office buildings into high-quality, sustainable serviced apartments, we will meet the growing demand for flexible and premium accommodation. We look forward to leveraging our development capabilities and Bob W’s hospitality excellence to create spaces that resonate with today’s discerning travellers and set new standards in this rapidly-growing industry.”
Rishi Khurana, co-founder of OCIM, said: “The joint venture is seeking an investment partner to create a pan-European platform to deliver attractive returns in a highly defensive asset class. We have seen recent exits in both single assets and operational platforms that demonstrates the liquidity of the serviced apartment asset class.”
