U.K.-based investment manager Schroders has acquired European hotel investment and management group Algonquin’s $2.2 billion of assets under management and various co-investments with Algonquin’s existing clients, expanding the firm’s real estate business.
“Our strategy has been to concentrate on what we define as winning cities which benefit from key structural themes of urbanization, changing demographics, technological innovation, the shifting demand from Asia and strong infrastructure,” said Duncan Owen, global head of real estate at Schroders.
Algonquin manages more than 7,500 hotels across Europe through the group’s own brands or international franchises, including Sheraton, Marriott, Hyatt, Radisson and Sofitel. Algonquin’s most recent additions to its portfolio were the Radisson Blu Hotel Toulouse Airport and the AC by Marriott Nice in 2017. Algonquin and Extend AM acquired the 143-room AC hotel on Nice’s Promenade des Anglais. The group later acquired the 200-room Radisson Blu in Blagnac, France, with Extendam in October 2017 and began operating the property in January 2018.
