L+R jv fund targets Nordics

STOCKHOLM – U.K.-based investor L+R Hotels and Stockholm-based hotel investor Midstar have launched a dedicated, €600 million investment joint venture, LR Midstar Holdings AB, to acquire and enhance hospitality opportunities across the Nordic region with an emphasis on key urban and select regional destinations in Sweden, Denmark, Norway, and Finland.

With a robust and active deal pipeline, new acquisitions will be managed by the joint venture’s asset management arm LR Midstar Management AB.

The platform launches with an initial equity commitment of €600 million, with flexibility to incorporate local debt financing and scale strategically as opportunities emerge. This capital structure is designed to support the assembly of a portfolio exceeding €1 billion over time.

L+R Hotels Global CEO Cody Bradshaw told Hotel Investment Today that several assets are currently under exclusivity and/or in advance discussions with various sellers with first deal(s) expected to be announced prior to year-end 2025.

The pipeline of single assets, portfolios and platforms available (or expected to become available) on an off-market and marketed basis in the near-to-medium term is robust. Both L+R and Midstar have decades of experience in transacting across this region and will make full use of our combined networks and deal sourcing capabilities.

Cody Bradshaw

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“The pipeline of single assets, portfolios and platforms available (or expected to become available) on an off-market and marketed basis in the near-to-medium term is robust,” Bradshaw said. “Both L+R and Midstar have decades of experience in transacting across this region and will make full use of our combined networks and deal sourcing capabilities.”

The formation of LR Midstar Holdings AB reflects a shared long-term belief in the resilience and growth potential of the Nordic hospitality sector. The region is supported by strong fundamentals, including stable economies, transparent real estate markets, sustainable tourism growth, and increasing institutional interest in the hotel asset class.

L+R Hotels enters this partnership with a strong legacy in the region, having previously invested in Finland’s Dividum hotel portfolio and Holiday Club resorts, as well as Stockholm’s iconic Berns Hotel. The group also held a diverse mix of commercial assets across Sweden, Norway, and Denmark, reinforcing its long-standing commitment to Nordic markets.

With a portfolio of 112 hotels and 21,000-plus rooms across the U.K., Europe, the U.S., and the Caribbean, L+R Hotels operates across luxury, resort, city, and select service segments. Flagship properties include Hilton Park Lane, Fairmont Monte Carlo, Nobu Hotels in London and Ibiza and a curated collection under its own brand, Iconic Luxury Hotels, including Cliveden House, Hotel Excelsior Venice Lido and Palm House.

Through Atlas Hotels, L+R Hotels also owns the U.K.’s largest privately held select-service portfolio, operating under brands including Holiday Inn Express and Hampton by Hilton.

“We have long admired the impressive track record of the Midstar team in executing portfolio aggregation and value-add strategies within the Nordic hotel sector,” Bradshaw said in a statement. “Based on L+R’s own extensive history of successful real estate investments across this region; we see a compelling opportunity for our two firms to join forces in deploying significant capital into accretive acquisition opportunities while leveraging our collective in-house capabilities to build a market-leading platform and deliver compelling risk-adjusted returns for our shareholders.”

Founded in January 2008, Midstar AB is a pan‑Nordic hotel real estate asset manager that focuses exclusively on the hotel sector. Its core mission is to “create better hotels” through active, long‑term ownership, development, and operational collaboration with hotel operators. The company targets properties with repositioning or development potential in key metropolitan areas and regional destinations across Sweden, Denmark, Norway, and Finland.

Midstar was the driving force behind the creation of Midstar Fastigheter AB, a pan-Nordic hotel property company comprising 28 hotels and 4,709 rooms before executing an exit in early 2025, selling the entire portfolio to CapMan Hotels II, marking one of the largest hotel real estate transactions in Nordic history.

Earlier in its history, Midstar, in partnership with Sveafastigheter, acquired a portfolio of underperforming Ibis hotels across Sweden. These assets were strategically renovated, rebranded under the Good Morning Hotels concept, and repositioned to cater to value-conscious travelers. The fully revitalized portfolio was subsequently sold to Partners Group, achieving a strong return on investment.

“We’re honored to join forces with L+R Hotels in launching this new hotel platform,” said Midstar AB Partners Peter Tengström, Marc Henriksen and Robert Wilhelmsson. “By combining our local expertise with L+R Hotels’ global reach and capital strength, we’re uniquely positioned to identify and unlock value in a market we know intimately. We share a long-term perspective and a commitment to creating hotels that perform both operationally and experientially for guests, operators, and investors alike.”