Hospitality company Bob W has partnered with Osborne+Co Investment Management (OCIM) to launch an equity raise of £120 million.
The joint venture is seeking an investment partner with the funds used to acquire and repurpose hotel and office assets into short-term serviced apartments in countries including Ireland, Portugal, Spain and the United Kingdom.
Finland-based Bob W and OCIM, which is the in-house investment management unit of developer Osborne+Co, are planning to turn up to 25 buildings into between 1,500 and 2,000 apartments with an estimated gross development value of £400 million.
Niko Karstikko, co-founder of Bob W, said, “This strategic partnership marks a major milestone for Bob W, enabling us to merge our cutting-edge, tech-driven hospitality solutions with Osborne+Co’s extensive expertise in real estate development. Together, we aim to transform underutilized spaces into vibrant, high-quality serviced apartments that meet the evolving needs of modern travelers. This partnership will enable us to deliver not only significant value for stakeholders, but also an authentic five-star hospitality experience for our guests as we continue to build a pan-European household name as the new elevated standard of hospitality for the next generation of travelers.”
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Denis McGowan, partner at Osborne+Co, said, “Partnering with Bob W on this venture is a remarkable opportunity to harness the current surplus and availability of assets in the office sector and underinvested assets in the hospitality sector in the U.K. and key European markets. By repurposing hotels and office buildings into high-quality, sustainable serviced apartments, we will meet the growing demand for flexible and premium accommodation. We look forward to leveraging our development capabilities and Bob W’s hospitality excellence to create spaces that resonate with today’s discerning travelers and set new standards in this rapidly-growing industry.”
The companies believe serviced apartments are one of Europe’s fastest growing asset classes and pointed to research from Bonard which revealed serviced accommodation is worth £1.7 billion to the U.K. economy.
Bob W raised €40 million earlier this year and said the investment would go towards technology development and recruitment.
Watch Karstikko and fellow panelists discuss the evolution of short-term rentals during a session at Phocuswright Europe 2024 in Barcelona last month:
Short Term Rentals at a Crossroads? Interhome, Bob W., Awaze, Guesty Phocuswright Europe 2024
