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 2016 with six hotels on its portfolio, located in Torres Vedras, Faro, Guimarães, Évora, Coimbra and Lisbon, totaling a turnover of Eur 3.2 Mn.
In 2017, Just Stay Hotels added two hotels to its portfolio, located in Oporto, and shall reach a total turnover of Eur 5.8 Mn.
For 2018 the Group plans to expand its network with the acquisition of units in the main district’s capitals of the country, with focus in Lisbon and Oporto.
Just Stay Hotels is a co-investment from Fundo Inter-Risco II and Fundo Inter-Risco II CI.