Bob W works with Osborne+Co to launch £120M hotel conversion fund

Joint venture will raise capital for acquisition and conversion of obsolete assets into serviced apartments

A new joint venture between tech-powered hospitality operator Bob W and Osborne+Co Investment Management (OCIM), the in-house investment management arm of global build-to-suit developer and investor Osborne+Co, has been announced.

The duo have launch a £120 million equity raise to acquire and repurpose hotel and office assets into high-quality short-term serviced apartments.

The £120 million value-add fund will mirror OCIM’s European footprint of offices, targeting key European markets including Ireland, Portugal, Spain, Poland and the UK. 

The joint venture plans to transform 20-25 buildings into 1,500 to 2,000 modern apartments and is targeting a GDV in excess of £400 million for its initial development pipeline. 

The partnership - which is actively seeking an investment partner - expects its first assets to be operational within 18 months.

By identifying obsolete or underperforming existing assets, the joint venture will maximise asset performance and significantly enhance overall property value across the new portfolio. 

The re-use of existing buildings will reduce the portfolio’s overall carbon footprint. 

Refurbished assets will be further optimised for operational efficiency, including enhanced insulation and other energy-saving features.

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 underutilised spaces into vibrant, high-quality serviced apartments that meet the evolving needs of modern travellers. 

"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 travellers.”

Denis McGowan, partner of 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 UK 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 travellers and set new standards in this rapidly-growing industry.”

Rishi Khurana, co-founder at OCIM, added: “The joint venture is seeking an investment partner to create a pan-European platform to deliver attractive returns in a highly defensive asset class. 

"We have seen recent exits in both single assets and operational platforms that demonstrates the liquidity of the Serviced Apartment asset class.”