10 October 2017

Cycas Hospitality secures multi-million-Euro strategic investment from Hua Kee

Leader in the extended-stay hotels secures significant investment from sizeable hotel owner and operator in Southeast Asia, Australia and Europe

  • Cycas Hospitality secures multi-million-Euro strategic investment from Hua KeeCycas Hospitality secures multi-million-Euro strategic investment from Hua Kee

Cycas Hospitality, the European leader in the extended-stay hotels sector, has secured a significant investment from Hua Kee, the Thai family office and a sizeable hotel owner and operator in Southeast Asia, Australia and Europe.

Cycas Hospitality is the largest branded extended-stay hotels operator in the UK, with additional operations in Benelux and ambitious plans to roll out the concept across continental Europe. It is a 'white-label' operator that partners with institutional and private investors to maximise the full potential of their hotel assets. Its current clients include Starwood Capital, M&L Hospitality, and CLS Holdings plc; outside North America, it is the largest operator of Staybridge Suites and Residence Inn hotels.

Hua Kee has acquired a one-third share in Cycas, and its investment provides the business not only with additional working capital but also a co-investment partner and potential for future deals.

Cycas Hospitality's turnover under management is forecast to treble over the next two years from €38 million to over €100 million based purely on the business's existing, secured and signed pipeline of hotels. Cycas currently has 3,000 guest rooms either open and operating, or signed and in the pipeline; it intends to grow this to more than 10,000 in the next five years.

Eduard Elias, Cycas Hospitality's co-founder, said:
"Extended-stay accommodation, which includes serviced apartments and aparthotels, is a new and dynamic asset class in Europe and is evolving as a major subsector in the hotel industry as leisure and business travellers increasingly seek and value flexibility and independence. We are delighted to welcome Hua Kee as investors and partners. We have exciting plans; we are actively seeking additional hotels to operate across continental Europe; and Hua Kee's investment provides us with the capital we need to achieve this next phase in our strategic plans."

Erik Jacobs on behalf of Hua Kee added:
"Cycas Hospitality is known for its exceptional customer service. This passion for wowing its customers, its clear market-leading position in this exciting, evolving market, together with its ambitious plans in Europe, made it a highly attractive investment proposition. In comparison with the US, Europe is largely underdeveloped and undersupplied in the extended-stay sector and we are anticipating this sector to gain significantly more market share in the short, medium and long-term. We are delighted to be Cycas Hospitality's strategic partners and investors."

Notes to Editors

About Cycas Hospitality

  • Cycas Hospitality"s team comprises experts in hotel operations, property development and asset management
  • The first branded extended-stay hotel to open in Europe was Staybridge Suites Liverpool in 2008, owned and operated by Cycas
  • Cycas Hospitality currently manages eight hotels, with an additional six hotels under construction that will open in 2017/18
  • As the pioneers of the branded extended-stay hotel concept in Europe, Cycas excels in providing first class hotel and extended stay operations, from designing concepts to delivering their signature "positively outrageous service". The heart of Cycas" first-class guest experience is a dedicated Culture Team; they energise and inspire staff and customers with the mantra "our job is not over until we get a smile" - the backbone of the Cycas operating philosophy
  • Extended stay hotels are notable for their low-labour operating model and high margins; strong growth is forecast for the sector in Europe
  • Historically, long-stay hotels have outperformed the standard hotel model during times of recession and recovered faster to pre-crisis levels
  • Cycas is also a committed member of the Association of Serviced Apartment Providers (ASAP), and one of the Cycas Founding Partners, John Wagner, is on the ASAP steering committee
  • Further information on Cycas Hospitality is available at www.cycashospitality.com

About Hua Kee

  • Hua Kee Group is a privately held conglomerate of various business holdings. With its origin in Thailand, Hua Kee are particularly active in the industrial, residential and hospitality sectors. On the hospitality side Hua Kee is active in Southeast Asia, Australasia and Europe with investments covering most areas in the hospitality sector ranging from urban full service conference hotels under Narai Group to smaller boutique hotels, resort hotels, limited service budget hotels, hostels and serviced apartments.


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