Prague Residences received a growth equity investment from BHMgroup, one of the most prominent Czech family offices
- Serviced Appartments / Hospitality
- Target company
- Prague Residences
- Our role
- Fundraising advisory to Target’s founders
- Transaction size
Prague Residences offer a short-term stay in design/boutique serviced apartments to leisure and business travellers. With more than ten years in this young market, the company offers 18 residences in attractive historical locations of Prague, the country’s capital city, with 350 uniquely designed and furnished units. With an exceptionally high level of services, high historical occupancy rate, successful dynamic pricing model, and good prospects to acquire additional accommodation capacity, the company has excellent opportunities to become a market leader in the Czech Republic after this transaction.
BHMgroup is one of the most prominent Czech family offices. The group invests in companies with specific know-how and high growth potential in the CEE region and Western Europe. Their portfolio includes assets in renewables, real estate, tech start-ups, healthcare and other industries. Investment into Prague Residences has been an opportunity to enter a new segment of real estate and hospitality industries with potential synergies with other assets in the portfolio.
Merger Vision advised founders of Prague Residencies on all aspects of capital raising and helped them negotiate critical terms of the transaction throughout a deal negotiated with the preferred partner.
Prague Residences, the largest provider of short-term accommodation in fully serviced apartments in the Czech Republic, has experienced a decade of rapid growth in accommodation capacity and the number of clients, in tens of per cent year on year. Therefore, we considered partnering with a financial or strategic investor to support our development. Merger Vision approached us well ahead of the transaction and presented several types of investors who might be interested in our company. Restrictions on tourism during the Covid pandemic affected our decisions. In the end, we preferred to maintain the independent development of the company in partnership with a financially strong local family office. Merger Vision helped us negotiate terms of investment, the development CAPEX plan and a shareholder agreement. Thanks to their services, the transaction was completed within about four months.