Schroders broadens client offering and accelerates growth of real estate division with acquisition of Algonquin

Frédéric de Brem, Head of Schroders Real Estate Hotels “I am pleased to announce that today, Algonquin has been acquired by Schroders. This acquisition is a significant step in the growth of Schroders’ private assets and alternatives business. The Schroders Real Estate team has an excellent track record in various sectors such as offices, retail, logistics, residential and self storage and we are delighted to be part of its expansion into the hospitality sector. Schroders and Algonquin both share ambitions to prepare the future and are fully focused on clients’ needs.“

Schroders today announces it has reached agreement to acquire Algonquin, a specialist pan-European hotels investment and management business with AUM of €1.8 billion. This includes Schroders acquiring various co-investments alongside Algonquin’s existing clients.

The acquisition of Algonquin accelerates the growth of Schroders’ real estate business and complements its existing capabilities and expertise. This acquisition is a significant step in the growth of our private assets and alternatives business which is of strategic importance to the Group and totals around £33 billion AUM*. This capability includes Securitised Credit, Private Equity, Infrastructure Finance, ILS and SME Lending alongside the Real Estate business which is the largest component with assets over £13 billion.

Founded in 1998, Algonquin began by investing in hotels with its own capital and directly managing them as early as 1998. The group currently manages assets across Europe, comprising more than 7,500 hotel rooms and representing €1.8billion worth of assets. These hotels are primarily managed through Algonquin’s own brands or internationally renowned franchises including Sheraton, Marriott, Hyatt, Radisson and Sofitel.

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