Following recent industrial acquisitions in The Netherlands and Germany, Henley has stepped up its international expansion with its first transatlantic deal.
The UK private equity property investor, which this week signed a sponsorship deal with Premier League giants Manchester City, has now teamed up with WaterWalk Hotel & Apartments, as it targets investment of $400 million (£260 million), in the US over the next three years.
The move will see Henley make an initial investment of $100 million (£65 million) to develop and open five WaterWalk franchises across Florida, North Carolina and New York. As well as being Henley’s first foray into the US market, it is also the first investment in the brand by a non-US investor.
WaterWalk combines all the traditional hotel services, in a purpose-built, gated community offering a range of upscale amenities. It is the fifth national brand from entrepreneur Jack DeBoer.
DeBoer is also the founder of Residence Inn (now owned by Marriott) Summerfield Suites (now owned by Hyatt), Candlewood Suites (now owned by Intercontinental) and Value Place.
Ian Rickwood, CEO of Henley, described the deal as a milestone for the company as it seeks to further its international presence and enter the US market.
“Our investment strategy is founded upon ensuring the best risk adjusted returns for our investors and our analysis of current demand trends in the leisure and residential markets in the States made WaterWalk a highly attractive investment opportunity,” he said.
David Redfern, President of WaterWalk’s Real Estate Development and Franchising Groups, added; “Henley realised this was a strong franchise partnership due to the demand for this unique product. They believe in our strategic vision, and are eager to help make our brand available to consumers across the country.”
Construction at the five sites is expected to commence in January 2016.
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