Brown Rudnick LLP Advises Queensgate Investments in Acquisition of Freehand Hotels Portfolio
PUBLISHED ON: 10/14/2019
NEW YORK – October 14, 2019 – Brown Rudnick LLP advised Queensgate Investments, a London-based investment firm, in the $400 million purchase of micro-hotel operator Freehand Hotels, a New York-based lodging company, from hotel operator Sydell Group and an investor group that included the Yucaipa Companies.
Freehand Hotels is a United States hospitality brand that consists of four locations operating in New York, Chicago, Miami and Los Angeles. The acquisition of award-winning food and beverage brand Broken Shaker, which operates at the properties, is included in the transaction.
Queensgate acquired Generator, a lifestyle accommodation brand that has properties across Europe and in Miami and Washington, D.C., in 2017. Generator will manage Freehand Hotels and retain the independence of the Freehand and Generator brands.
“The closing of the Freehand Hotels acquisition on the heels of the Generator deal propels this group to compete as one of the largest lifestyle hospitality platforms in the world,” said Tom Phillips, Brown Rudnick’s lead partner on the deal. “As we continue to see disruption in the hospitality sector catering to new generations, this strategic transaction is a further example of where the industry is headed.”
The large cross-office and multi-disciplinary team at Brown Rudnick was led by Tom Phillips (real estate), Jen Charles and Phil Flink (corporate) in Boston, Tom Regan (real estate finance) in Hartford, Barbara Kelly (tax matters) and Steve Einhorn (employee benefits) in New York, and Tuvi Keinan (real estate finance) and Nick Vasquez (corporate) in London.
The team managed a complex mix of corporate and real estate transactions for the acquisition of assets in four separate jurisdictions, which included a Historic Tax Credit investment structure at three of the hotels, all wrapped up under an omnibus financing package, to reach a successful close.
Brown Rudnick also advised Queensgate in its £1 billion acquisition of four central London hotels from the Grange Hotels group earlier this year. Brown Rudnick has acted for Queensgate on transactions totaling over $3 billion, including the acquisition and financing of the Kensington Forum Hotel in London, the acquisition, bolt-on acquisitions and refinancing of the Generator hospitality group in Europe and the United States, and the sale of LEO, a serviced offices business, in London.
About Queensgate Investments
Queensgate Investments advises and manages around £3 billion worth of assets through the suite of Queensgate Investments Funds. Queensgate is a partnership between the Kow Family, Alvarium Investments and Peterson Group. Queensgate differentiates itself by its flexible, nimble and non-institutional approach to producing superior risk adjusted returns. Queensgate Investments has over £2 billion of purchasing power.
About Brown Rudnick LLP
At Brown Rudnick, we combine ingenuity with experience to achieve great outcomes for our clients. We deliver partner-driven service; we incentivize our lawyers to collaborate in the client’s best interest; and we put excellence before scale, focusing on practices such as corporate restructuring and distressed situations, M&A, white collar defense, international disputes and intellectual property, where we are recognized leaders. We have more than 250 lawyers and government relations professionals across the United States and Europe, with offices in key financial centers. Beyond the United States and Europe, we serve clients in the Middle East, North Africa, the Caribbean and Latin America.
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