Ireland: Dublin-based serviced apartment operator Staycity has undergone a shareholder restructuring.
Declan Ryan, one of the founders of Ryanair, has sold his stake
in the company and stepped down from the board, while Staycity
founders Tom and Ger Walsh, will become the largest shareholders.
Ryan's 40 per cent stake was held through his company
The Walsh brothers have raised €20 million in capital from Swedish finance house Proventus Capital Partners, valuing Staycity at €40 million.
Chief executive Tom Walsh said: "We are delighted that Proventus has recognised the growth potential in the Staycity business. There is growing demand for serviced apartments across Europe so it's an exciting time for us to continue to expand and strengthen the Staycity brand."
"As an early-stage investor we knew Irelandia would look to realise a profit at an appropriate point. We are grateful for the support Irelandia has given us as well as their help and guidance during our initial set-up and growth period. At this stage of our growth cycle it is important that the company broadens its capital platform and we are happy that our new partnership with Proventus achieves this," he added.
Staycity operates around 1,000 apartments in eight European cities including Dublin, London, Paris and Amsterdam.
A Proventus spokesperson said Staycity "has a leading position in an expansive and fast-growing niche of the travel industry. We believe the company is well positioned to continue to grow with its strong value proposition and efficient operations".
While we have seen regular investment in the European serviced apartment sector from US capital (Starwood Capital, Patron, Oaktree and more), it's exciting to see European money getting in on the act. Staycity's clearly defined business model is an obviously attractive one to investors, and we predict further investment for them, and more European finance houses getting involved in the sector.