Our goal for the coming years is to develop a pan-European hostel platform, and to become a leading player in the fun-social hostel segment. Our value proposition is based on the acquisition of prime located unique establishments and the development of a disruptive and sustainable concept for these establishments focused on socialization and integration in the local community. The ultimate goal is to offer an unforgettable experience to our customers.
PARTNERSHIP WITH KKR
To this end, we have partnered with KKR, and plan to invest 350m€ (with an initial equity contribution of €125m) to acquire 20 new properties with up to 8,000 beds in cities all across western Europe to be operated by our brand CATS, as one of the best known in the sector .
Currently, we own five hostels in Spain and Portugal: three in Madrid, one in Lisbon and one in Porto.
Our new partnership will facilitate an international expansion plan predicated on strong regional scalability that will pave the way for significant operational synergies that help achieve our high-profitability objectives. We are confident that KKR’s knowledge of the hospitality sector, combined with our real estate background and expertise in hostels management, will provide a strong foundation for growth.
We focus our strategy on millennials and Generation Z, representing around 70% of our customers, a segment characterized by their passion for travel, living new experiences and learning from new cultures.