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Brochure |
Private Offering Memorandum |
FOR A SOPHISTICATED INVESTOR
City Centre Hotels LP provides an exceptional opportunity to invest in the UK hotel market. Despite the credit crunch, the UK hotel market has enjoyed continued progression and expansion. Room rates and occupancy levels in UK hotels are still reaching record highs, with all the signs pointing to further future growth.
This is a chance for you to become part of an exciting new brand of extended stay hotels in the UK - ES Place. With this new brand, the Stakis family of hoteliers mark their return to the UK market. City Centre Hotels LP's general partners have the required experience in securing real estate developments and this knowledge, combined with unparalled industry contacts, gives them the ability to discover and select investment properties on behalf of our investors.
In the current market, the ability to use our network or real estate developers, estate agents. bankers and sophisticated investors is our major strength. This allows is now more than ever to provide unrivalled flow of cutting-edge real estate investments and joint venture opportunities for the fund.
OVERVIEW OF THE INVESTMENT
The fund is looking to raise up to £40 million for investment into the UK extended stay hotel market.
The primary focus of investment will be new build hotel developments in UK city centres. In conjunction with Equinox Stakis Worldwide Hotels LLP and ES Place, a new brand of hotels will be introduced to the UK extended stay hotel market.
The goal is to acquire up to 4 hotels over the term of the investment. The aim is to either acquire these hotels on a turn key basis from a developer or develop on a joint venture basis with land owners. The Managing General Partners believe that the development cost of each hotel in the portfolio will be in the region of £25 million to £30 million with an equity investment of approximately £8 million to £10 million for each hotel. The Managing General Partners are already in discussions with third parties in relation to potential sites in Manchester, Liverpool, London, Glasgow and Edinburgh.
THE IDEA...
ES PLACE
ES Place will provide upscale limited service extended stay accommodation. The intention is to develop a product in prime locations that is positioned above the existing fragmented competition.
ES Place will be a four-star deluxe extended stay product designed to capture primarily high-yielding corporate demand. The proposed developments will be well positioned to also capture leisure related demand. The criteria for the locations are that they are city centres with proximity to major transport links and also lifestyle amenities. They will also be in a prominent location and close to demand generators so that there are opportunities for coporate and leisure markets in locations that allow or demand distinctive architecture.
FEATURES
- 4 star deluxe room
- Designed to capture corporate demand
- Competitively priced Service: Attentive, but not intrusive
- Concession opportunites for complimentary services Character: Individual, flexible and inviting
- Welcoming environment Styling: Modern, warm, bright and welcoming
- Uniquely spacious rooms Rooms: Spacious, luxurious and adaptable
- Contemporary styling
- Cutting edge technology throughout the hotel
- Lobby as meeting place
KEY FEATURES
STRUCTURE OF THE FUND
Private Individuals will invest directly into a Limited Partnership - City Centre Hotels LP.
SIPP/SSAS investors will invest into the Feeder Fund LImited Partnership - City Centre Hotels Feeder Fund LP
MINIMUM INVESTMENT
Minimum investment £40,000 in multiples of £1,000 per Unit thereafter
UNITS OFFERED
Phase 1
- Amount to raise = £10 million
- Closing Date = 31st March 2009
- Class A1 Partnership Unit - £100,000 Investment with a 5% discount applied and 80% profit share on liquidation
- Class B1 Partnership Unit - £40,000 Investment with 3% discount applied and 80% profit share on liquidation
Phase 2
- Amount to raise = £10 million
- Closing Date = 31st July 2009
- Class A2 Partnership Unit - £100,000 Investment with a 3% discount applied and 80% profit share on liquidation
- Class B2 Partnership Unit - £40,000 Investment with a 2% discount applied and 80% profit share on liquidation
Phase 3
- Amount to raise = £20 million
- Closing Date = 31st March 2010
- Class A3 Partnership Unit - £100,000 Investment with NO discount applied and 80% profit share on liquidation
- Class B3 Partnership Unit - £40,000 Investment with NO discount applied and 80% profit share on liquidation
TARGET INTERNAL RATE OF RETURN
12 - 15%
The General Partners receive 0% until the fund achieves 10% for the Limited Partners
CLOSING DATE FOR APPLICATIONS
31st March 2010 (unless extended by the General Partners)
EXPECTED INVESTMENT LIFE OF FUND
6-8 Years
FEES & COMMISSIONS
Please refer to the Private Offering Memorandum
THE OPERATOR = Equinox Stakis Worldwide Hotels LLP
Equinox Stakis Worldwide Hotels LLP will be appointed as the operators of the hotels that the Partnership acquires. Equinox Stakis Worldwide Hotels LLP has been set up mainly to act as the hotel manager on behalf of the fund.
Evros Stakis
The son of the late Sir Reo Stakis, is returning to the industry he first trained in and with which his name is most closely associated. Evros is the inspiration behind the ES Place brand, a new name for quality accommodation in the rapidly evolving extended stay market place. The aim is to create a unique new hospitality product and brand.
Abdul M. Suleman
Abdul has over 30 years experience in the hospitality industry, and has earned a reputation for successfully turning around under-performance hotel properties. Abdul founded Equinox Hospitality in 1997. Equinox Hospitality is a hotel management, development and holding company established to acquire, develop and manage hotels in major markets throughout the USA. Its focus is on continuous profitable growth and generating maximum return on investment.
Prior to forming Equinox Hospitality, Abdul served in senior management positions with Hyatt Hotels Corporations for over twenty years. He was directly responsible for the opening and the operation of a number of Hyatt Hotels.
GENERAL PARTNER
Worldwide Property Advisors GP Limited is the General Partner of the Partnership. Worldwide Property Advisors GP Ltd is a recently incorporated company whose director is Dennis Riddick. Dennis also heads up the team behind Worldwide Solutions Group Ltd (WSG). Worldwide Property Advisors GP Ltd is controlled by WSG.
WSG is headquartered in Manchester and was established in 2002 to locate luxury resort-based real estate for its clients. Since inception WSG has gained experience in the global real estate market, acquiring 15 projects with an aggregate $380 million value. In 2004, WSG opened offices in New Jersey, USA. WSG currently has assets under management of $120 million US dollars in two real estate limited partnerships (Stirling Assets LP and Canadian Resort Assets LLLP)
MANAGER
Worldwide Solutions Partners LLP has been appointed as the Manager of City Centre Hotels LP. Worldwide Solutions Partners LLP is also controlled by WSG.
WHY INVEST?
* Opportunity to gain access to the UK extended stay hotel market *
* Alternative asset class for investors *
* Experienced industry personnel behind the venture *
* Pensions Investment Opportunity - available to SIPP/SSAS investors *
* Targeted returns of 12% - 15% p.a *
* Favourable purchasing terms on development and land costs given the current market place *