L+R Hotels, a London-based Hotel investor and operator, and Dutch pension fund manager PGGM have backed a European value-add hotel venture launched by LRO Hospitality. The new hotel investment & asset management company LRO Hospitality set up by L+R Hotels and John Ozinga, former CEO of Accor Invest.
It will originate transactions through an extensive network of industry contacts, actively manage hotels, and implement asset management strategies to enhance overall quality and performance to maximize investor returns. The team is led by CEO John Ozinga and CIO Henri Wilmes and will be supported by L+R Hotels’ asset management team throughout the life cycle of the investments. Focus will be placed on key Western European city markets in France, Germany, Benelux, Spain and Italy.
John Ozinga, founder and CEO of LRO Hospitality said: “Current market conditions will present LRO Hospitality with attractive investment opportunities to acquire from investors or operators facing cash flow challenges. Given the expected short to mid-term post-pandemic recovery, we believe it is the best time for us to launch our first hotel venture.”
Desmond Taljaard, Managing Director of L+R Hotels, said: “We are pleased to enter into this venture with PGGM as we believe in the resilience of the hotel market and its recovery in the future. The commitment of PGGM shows their confidence in our ability as deal sourcer, hotel operator and asset manager to create value, and their appetite for the European hospitality sector as an institutional asset class, despite the negative short-term impact of the COVID crisis”.
Tinka Kleine, Senior Director Private Real Estate for PGGM, said: “We have added hotels to our city focused investment programme because it offers attractive investment opportunities, both for achieving financial returns and for improving the sustainability performance of well-located assets. The strong track record of L+R Hotels and the LRO team in securing and executing such strategy provides a perfect base for a successful partnership.”