Germany’s Freo Group form Alliance with UK’s Michels & Taylor

Main Photo: The Hotel Donnersberger Bridge in Munich, part of Freo Group’s portfolio.

Date: March 2019

Location: UK and Germany

Name: The Freo Group and Michels & Taylor

Who: Established in 1996, FREO Group is an independent international investor, developer and manager of high quality real estate. From 13 offices in Germany, the United Kingdom, France, Spain, Switzerland, Luxembourg and the USA, FREO has worked on more than 50 projects totalling in excess of 2 million square metres.

And: Michels & Taylor originated in 2010, with the aim of bringing together the best in the business for hotel asset management, consultancy and hotel management.

M&T has been able to help numerous hotels across their management and operations; the asset management team uses analysis to support operators, and the hotel management division helps hotels with operational expectations and day-to-day activity.

Today, M&T has become one of the largest hotel asset management companies in Europe – and work with over 100 hotels ranging from independent to international brands.

The founders of Michels & Taylor are passionate about the industry to say the least. Sir David Michels has more than 40 years’ experience and boasts a strong hospitality and investment background.

He was knighted in 2006 for his services to the hotel and catering industry. Hugh Taylor has over 30 years’ experience and comes from a marketing and hospitality background that includes Hilton, Radisson and Ramada. He was awarded an OBE in 2008 for his services to tourism and hospitality.

As the International Hotel Investment Forum began in Berlin, European hotel management and advisory company Michels & Taylor announced that it has completed a strategic partnership agreement with Freo Group, the European real estate investment and asset-management business.

The deal allows M&T to utilise the investment resources of Freo. At the same time, Freo, which has acquired 25 percent of M&T’s shares as part of the agreement, will have access to M&T’s hotel platform.

M&T’s services include hotel management, advisory, asset management and brand selection, and now will be able to join its current and future clients in active investment opportunities as well as sourcing with Freo and its investment partners its own acquisitions.

“Having successfully grown all areas of our businesses in recent years, we have managed to build a well-respected and substantive hotel platform upon which our client base has been able to rely over the past few years,” David Michels, chairman of M&T, said in a statement. “This deal with Freo allows us to continue to develop our core businesses for our clients but now with real investment resources behind us.”

“Freo believes that expertise in managed real estate is critical for future development and asset management,” said Andrew Hunter, managing director of Freo Management (UK). “Hotel operations is a very important part of this and we are privileged to be able to enter into a strategic partnership with the class leading group of M&T. This relationship will open up significant opportunities for Freo and its investment partners across the full value chain of hotels, from initial feasibility through delivery to long term operation.”

AHV Associates LLP, the boutique investment bank in the hospitality sector, initiated the partnership discussions and advised Freo on the transaction.

Price: Undisclosed

THPT Comment: Great move for both parties.

First Seen: Hotel Management

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