Metric Capital Partners & Hutton Collins Partners announced today that they have invested in the further growth of TVHG in the Netherlands via a credit instrument with equity participation.
TVHG has an initial, contracted pipeline of 19 select-service hotels in the Netherlands. The hotels are in prime locations throughout the country, including Amsterdam, The Hague, Rotterdam and Eindhoven. Each of the hotels will carry an international brand, including Holiday Inn Express, Hampton by Hilton, IBIS, Aloft and Courtyard by Marriott.
The Metric Capital/Hutton Collins investment will allow TVHG to develop more hotels in the Netherlands with a development value in excess of 120 million.
The Metric Capital/Hutton Collins investment supports the management team, headed by Bart van de Kamp (CEO - TVHG), one of the leading hotel developers and operators in the Netherlands. It supports the further expansion of TVHG's hotel developments and hotel operations, which are managed by Interstate Hotels & Resorts, who are already a minority shareholder in TVHG.
The TVHG business model is largely based on benefiting from the stress created by the excess of office supply, which offers financially interesting opportunities in preferred locations. The model further focuses on the shortage of branded budget hotel stock in the Netherlands.
TVHG and Interstate have been working together for well over a year and their experience in developing, managing and operating predominantly limited service hotels such as Holiday Inn Express, Courtyard by Marriott, Aloft and Hampton by Hilton in the Netherlands, has proved to be an extremely effective partnership.
Commenting on the deal, John Sinik, Managing Partner of Metric Capital, said:
"The TVHG opportunity is attractive to us given the strength of the team. This includes not only the TVHG management team, but also Interstate as a world-class operator. Additionally, TVHG have highly differentiated distribution through their partnership with Intercontinental, Hilton, Marriott, Starwood and Accor ".
Bart van de Kamp, CEO of TVHG added:
"We are extremely happy with Metric and Hutton Collins as partners. We required their investment, financial strength and expertise to further expand our business, not only in the Netherlands but also in Belgium, Luxemburg and France. Their investment and expertise will further facilitate our growth."
Colliers International, in partnership with Cornucopia Capital Limited, assisted TVHG Budget Group Netherlands on the capital sourcing and financial structuring. Boekel de Neree, PWC and Jones Day assisted TVHG in the legal advisory of the transaction. BLP and Loyens Loeff advised Metric and Hutton Collins.