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ALCHEMY AND STEP PARTNERS ESTABLISH A JOINT SPECIAL SITUATIONS HOTEL INVESTMENT PLATFORM AND ANNOUNCE FIRST INVESTMENT IN DORTMUND, GERMANY

London/Frankfurt/Dortmund, February 2, 2022 

Funds advised by Alchemy Special Opportunities LLP (“Alchemy”), the European private equity and special situations firm, and Step Partners GmbH (“Step”), a fully-integrated hotel operator and investment company focused on turnaround situations, have formed a hotel investment platform (Alchemy Step Hotel Group, “ASHG”) that aims to invest up to EUR 250 million into hotel special opportunities. 

ASHG is acquiring single hotel assets of greater than 90 keys and hotel portfolios in the 2 to 4 star category across Europe, with a focus on primary and secondary urban markets, primarily in Germany, Austria, Benelux and the UK. ASHG focuses on assets that typically require significant re-positioning, refurbishment and operational turnarounds. 

The platform has full flexibility to acquire hotel assets directly from owners, out of administration or invest into non-performing debt secured against hotel assets. 

As a first investment, ASHG acquired the Hotel Dortmund am Technologiezentrum, a 90-room three-star hotel located in close proximity to the Technical University Dortmund, the adjoining Technologie Zentrum Dortmund as well as the trade fair and event locations of Westfalenhalle and Signal Iduna Park. Step will take over operations from the incumbent tenant as of 1 March 2022. 

Matthias Gradischnig, Director at Alchemy, commented: “We are delighted to be partnering with Step, whose partners have an excellent track record as hotel operators and developers. As an experienced investor in the hotel sector, we aim to bring stability to assets that have often been struggling since the onset of the COVID-19 pandemic as well as the funds to modernize and re-position under-invested assets.” 

Bas de Vries, a Partner at Step, added: “The first investment of our ASHG platform, Hotel Dortmund am Technologiezentrum, is testament to our conviction in the continued attractiveness of limited service, urban hotel assets in Europe. With its vicinity to important trade fair and event locations, academic institutions, the city center as well as major company headquarters, we see significant potential from a diversified mix of business and leisure customers. Furthermore, we expect material upside from a targeted refurbishment and repositioning program. Pairing our operational experience with the expertise, network and financial resources of Alchemy, we are in an excellent position to make further acquisitions and grow our portfolio in Europe.” 

About Alchemy and Step Partners 

Alchemy is a European alternative asset management business established in 1997. It has invested over GBP 4 billion since inception in over 180 transactions and currently advises funds with asset under management of c. GBP 1.6 billion. 

www.alchemypartners.co.uk

Step is a fully-integrated hotel operator and investment company based in Frankfurt, specializing in turnaround situations with the aim of generating above market returns in hotel assets through strategic, operational and financial re-positioning. 

www.step.partners