Cedar Capital, Ares recapitalize 5 European hotels

LONDON – Cedar Capital Partners has completed a recapitalization with Ares Management Real Estate Secondaries funds for a portfolio of five lifestyle hotels worth about ($417 million) in European gateway cities. The portfolio will be owned by Cedar Investment Partners III SCSp, a Cedar-managed fund.

Three of the five assets, Hoxton Rome, Hoxton Lloyd Amsterdam, and Mama Shelter, Prague, have undergone renovations in recent years and collectively comprise 566 rooms. The remaining two hotels are scheduled to open in 2025. The fund is expected to acquire additional assets this year.

“We are excited to partner with Ares, and we very much look forward to advancing this portfolio of unique assets though its next growth stage,” said Cedar Capital Partners Founder and CEO Ramsey Mankarious.

Cedar Capital Partners is a specialist hotel investment firm that has acquired more than $4 billion of hotel assets across Europe and the U.S. with a focus on luxury, full-service and lifestyle hotels.

Michelle Creed, partner and co-head of Real Estate Secondaries at Ares Management, added, “This acquisition represents a rare lifestyle hotel opportunity that aligns with the growing trend of experiential travel across Europe. We look forward to working with the talented Cedar team, and this transaction reaffirms our team’s conviction in European real estate.”

As of September 30, 2024, Ares Management's global platform had approximately $464 billion of assets under management with operations across North America, Europe, Asia Pacific and the Middle East.

CBRE’s investment banking team, alongside joint adviser Deutsche Bank, advised Cedar Capital Partners on the recapitalization.

Eoin Bastible, managing director at CBRE’s investment banking arm, said: “We’re pleased to have advised Cedar Capital Partners on this significant recapitalization, part of a growing trend that we believe will continue through 2025.

“From our standpoint as leading advisers in this space, we expect investment managers and asset owners to seek innovative continuation vehicle solutions to recapitalize their portfolios.”