Orr to lead expansion after swoop on Sleeperz
Sleeperz Hotels has been acquired by real estate investment company Mactaggart Family & Partners and will be expanded under a review led by Scots hotelier David Orr.
Mr Orr, who led the unsuccessful bid to turn the former Royal High School in Edinburgh into a ‘world class’ hotel, is chief executive of Mactaggart’s Resident Hotels brand and will be targeting city centre hub locations for Sleeperz.
Mactaggart has acquired the stakes held by Costain and Connection Capital, alongside the shares held by Sleeperz management. The group has also invested additional funding alongside André Hoffmann, a long-standing investor in the business.
William Laxton, CEO, Mactaggart Family & Partners, said: “Sleeperz is a different but complementary guest product and investment strategy, alongside our Resident Hotels platform, and underlines our faith in the hotel sector and city centre hotels in particular.
“We believe there is scope for expansion in vibrant city hubs and look forward to working with the teams at Sleeperz to grow this brand with our own reputation led approach to revenue at its heart.”
Mr Orr will be working with David Myers, CEO of Sleeperz Hotels, and his team to review operations with an eye to growth and is expected to take over the running of the brand through a hotel management agreement, to be signed later this year.
Sleeperz Hotels, which was launched by Myers in 2008, builds and operates distinctive premium budget hotels close to mainline rail stations in Cardiff, Dundee, Edinburgh and Newcastle.
Mr Orr, who launched City Inn in Edinburgh in 1995 with his father Sandy and business partner Donald MacDonald, said: “I have great respect for David’s achievements.
“The brand has an underlying authenticity that eludes many bigger competitors and that’s really interesting for us and for investors, who are drawn to distinctive, well-run brands.
“We look forward to engaging with property owners and institutions as well as securing sites direct as we expand the brand and build on David’s innovation.”
Mr Orr added: “There are aligned values and synergies between Sleeperz and The Resident as a platform, as well as significant differences, and this brand gives us, as Resident Hotels Limited, the opportunity to access more destinations in the UK. The current Sleeperz portfolio is very attractive, with Cardiff, Newcastle and Dundee all striking buildings, while Edinburgh is more classical.
“As one of the founders of City Inn, I can see the incredible potential this section of the market affords creative, independent hoteliers. It is exciting to be working with Sleeperz and we are really looking forward to supporting the team.”
Resident Hotels has expanded under Mactaggart Family & Partners and last year announced its sixth location, a 166-bed hotel The Resident Edinburgh due to open in early 2024. A further c.125 bed Central London project is also secured and in planning.
Resident Hotels has plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms targeted. Growth plans for Sleeperz will be announced in due course.
Mr Orr is also chairman of Urbanist Hotels, which was behind the plan to redevelop the former Royal High School in Edinburgh into a “world-class” luxury hotel run by Rosewood.
In 2010 City Inn became Mint Hotels but the venture was short-lived. The banking crash of 2008-09 claimed its banking partner Bank of Scotland and Mint’s was unable to refinance. In 2011 the business was sold for £628m to Blackstone Group, the private equity firm. Hilton managed the hotels but by spring the following year, the Mint brand disappeared.