New fund to snap up distressed hotels

A NEWLY launched private equity real estate firm is seeking to raise $US500m ($690m) to specifically purchase distressed Asia Pacific hotels, as the level of pain inflicted on the tourism sector by Covid-19 becomes ever clearer.

Industry veteran Phil Kasselis wants to acquire hotels across Australia, Asia and the Pacific in a bid to re-position them post Covid-19.

“The current market cycle presents enormous opportunities to acquire underperforming assets, implement value enhancing asset management strategies, and take advantage of a post-Covid travel recovery in one of the world’s most dynamic regions,’’ said Mr Kasselis, launching his new firm Hospitality Private Equity Partners on Wednesday.

H-PEP is in discussions with investors regarding raising $US500m for Asia Pacific hospitality opportunities, he said. “We are already seeing strong investor appetite in the hotel sector with prominent investment groups such as GIC, Blackstone, Partners Group and KSL Capital Partners active in Asia Pacific,” he said.