Catalyst Capital, which is amid a StayCity aparthotel development in Manchester’s Mason Street, has formed a £500m joint venture with Hero Enterprise of India.
Hero Catalyst Hospitality Ventures will invest in and develop hotels, serviced apartments and hospitality-led projects, initially in the UK and Ireland. The JV said that it is aiming to develop multiple projects with a significant equity commitment to acquire land and buildings. It will also look to invest alongside other landowners, owners or developers holding opportunities with hospitality potential.
The team is already delivering in excess of 1,000 hotel and serviced apartment rooms in Manchester and Edinburgh. This includes the 224-bed StayCity in Mason Street, New Cross being delivered by Bardsley to designs by SimpsonHaugh.
Hero Enterprise of India represents the business interests of its founder Sunil Kant Munjal, and has grown out of the automotive giant Hero Motorcorp, formerly Hero Honda, the country’s largest producer of motorcycles and scooters. The company’s previous foray into the UK was HEROtsc, a contact centre business.
Catalyst development director Rob Skelston becomes head of development for Hero Catalyst Hospitality Ventures. He said: “We believe this is an opportune time to expand our hotel development programme, leveraging the experience and expertise at Catalyst Capital combined with the reputation, management strength and credibility of Hero Enterprise”.
Sunil Kant Munjal, chairman of Hero Enterprise, said: “We are delighted to return to the United Kingdom through this joint venture with Catalyst Capital. This venture provides an ideal platform to establish a world-class hospitality development business in the region.”
Other Catalyst projects include Arkwright House, where it completed a £16m refurbishment in autumn 2017, while it is working with Irish hotel operator Dalata on the Maldron Hotel project in Charles Street. The Manchester office is now being headed by development director Dan White, with Catalyst in the process of appointing a further development director for the office.