The Student Hotel announced a capital increase and equity commitment of EUR 150 million funded by Perella Weinberg Real Estate which will enable the Amsterdam-based leading student accommodation provider to expand significantly further into Europe. The capital increase will allow The Student Hotel to address the shortage of quality accommodation across Europe to meet local and international student needs, through the accelerated roll out of the brand’s innovative accommodation model.
The Student Hotel currently operates four properties in the Benelux region. The capital increase will enable the company to expand into a major European student housing and hospitality brand by developing, owning, and operating hotels in leading university cities that attract international students, young professionals, and youth travellers. Property locations currently include Amsterdam, Rotterdam, Liège, and The Hague; the expansion strategy will target, among others, sites in Paris, London, Madrid, Barcelona, Berlin, Frankfurt, Brighton, Edinburgh and Dublin.
Aiming to own and operate hotel properties ranging from 350 to 700 rooms, The Student Hotel seeks to serve the flexible accommodation needs of the growing millennial generation. According to the OECD, the population of internationally mobile students more than doubled from 2.1 million in 2000 to nearly 4.5 million in 2011. The total number of international students is set to rise to 7-8 million by 2020, exacerbating an already profound shortage of student accommodation.
The first acquisition to result from the partnership is the Trouw/Parool Tower in Amsterdam, a former newspaper offices which will be converted into a flagship 574-room hotel, with a range of facilities including gym, class rooms, offices, three on-site restaurants and a club. The 24,000 m2 property is located five minutes from Amsterdam city centre, between the campuses of the University of Amsterdam and the Amsterdam University of Applied Sciences. The Student Hotel will operate a total of 2,200 rooms by 2015 and aims to be operating 10,000 by 2020 across Europe.
The Student Hotel’s innovative and unique concept maximises occupancy yields by fusing long-stay student accommodation with short-stay hotel facilities, offering a truly flexible model. The brand has a boutique approach and delivers high quality design, food & beverage, events, amenities and a flexible rental system to an otherwise under-serviced market.
Charlie McGregor, Founder and CEO of The Student Hotel comments:
“We are thrilled about our partnership with Perella Weinberg Real Estate. The movement of students between countries has become a global phenomenon. The growing number of international students deserves better and more accommodation options, no matter where they go in Europe, and it’s great to work with an investment partner that shares our vision to roll-out high quality and community-driven student and hotel accommodation across Europe.”
Vincent Rouget, Managing Director at Perella Weinberg Real Estate UK LLP comments:
“We are truly excited about our partnership with The Student Hotel and its management team. We believe The Student Hotel is one of the most exciting concepts in student accommodation today. The unique design and hybrid business model of The Student Hotel makes it well suited to cater to those that seek short and long-term study and training opportunities at home and abroad, and we aim at supporting future growth of this successful concept in the Netherlands as well as in other European markets.”