Industry: Limited Service Hotels
Investment Type: Build-Up
Stake: 90.0% (expected)
Just Stay Hotels is a holding company created by Inter-Risco in order to develop a build-up strategy in the Portuguese hotel industry, and more specifically in the limited service market segment. This investment aims to place Just Stay Hotels as a referenced player in this market segment under Stay Hotels brand.
The investment case was based on the existence of a highly fragmented market with attractive margins and where most of the hotels in this segment belong to independent players. Therefore, the investment is settled on the possibility to equip each acquired unit with professional management, CRM tools, integrated information systems, development of the commercial function and achieve scale economies.
The buy and build strategy envisages the creation of a national limited service hotel chain focused on operation optimizations and integration synergies, brand awareness through the roll-out of the project’s brand to the 18 acquired hotels, in order to achieve an annual total turnover of Eur 20.0 Mn.
Just Stay Hotels closed 2018 with eight hotels on its portfolio, located in Torres Vedras, Faro, Guimarães, Évora, Coimbra, Lisbon and Oporto, totaling a turnover of Eur 7 Mn.
For 2019 the Group plans to expand its network with new units in Lisbon and Oporto, including the opening of a boutique hotel in Chiado, with 38 rooms, in the third quarter of 2019.
Just Stay Hotels is a co-investment from Fundo Inter-Risco II and Fundo Inter-Risco II CI.