SACO Acquires Capital Assets

Bristol-based aparthotel operator SACO has acquired two sites in Edinburgh. Chief Executive Max Thorne explains more...

Tell us about your business? 

SACO – The Serviced Apartment Company – provides serviced apartments in cities around the world. The business was started 18 years ago by David and Lesley Freed, who both have legal backgrounds. David was a well-respected property developer and during one of his early developments, there was the opportunity to create an aparthotel in a city that needed an extended stay product. That’s when David’s wife Lesley started The Serviced Apartment Company. Over 18 years it has grown from a small well-respected regional owner-operator to a UK based operator with a significant corporate following.

The cycle of business in Edinburgh, particularly with the Festival, is phenomenal - putting Scotland firmly on the map of the international business and leisure market.

Having taken stronghold positions in key regional cities including Manchester, London and Bristol, it made its first international move into Amsterdam last year.

In March 2015, SACO was acquired for an undisclosed sum by Oaktree Capital Management, an investment firm with its own serviced apartment platform. The combined business has 2,000 properties in the UK and Europe, more than 200 staff and forecast combined turnover in excess of ￡50m. 

What makes Edinburgh such an attractive market? 

It’s the capital of Scotland and a landmark internationally renowned city. It’s full of culture and intrigue – and tourism in Scotland is growing.

I’m chair of the aparthotel committee for the British Hospitality Association and I’m also on the board of the Scottish Tourism Alliance and British Hospitality Association Scotland. So we’re heavily involved in lobbying for tourism, hospitality and leisure in Scotland and we’re completely bought into the Scottish story. We’ve also acquired two sites in Aberdeen and one in Glasgow, so we’re a big Scottish supporter. 

What are you developing and what’s the rationale? 

We’ve acquired two sites in Edinburgh, one on George Street between Browns and Tigerlily – Lismore House. It will be opening in early 2016 as a luxury 72-bed aparthotel.

Behind there on Queen Street we’ve acquired Erskine House (main image), which will have 180 apartments. We’re going to be the new pulse in Edinburgh city centre.

We know Edinburgh has a very good budget, 3-star reputation, with the likes of The Balmoral, The Waldorf Astoria and The Scotsman hotels at the 5-star end. But we believe there’s an opportunity to offer apartments with hotel service in key city locations which can meet the needs of the transient short business traveller – and also meet the needs of the leisure traveller looking for a more extended stay. 

How would you like to see your business grow here? 

We’d like to be a success. We’re supporting local industry associations and we’re also committing time, money and resource to help develop leisure and business travel in Scotland. The trading numbers that are repeated through various industry representatives speak for themselves.

The cycle of business in Edinburgh, particularly with the Festival, is phenomenal. The people organising these festivals, events and conferences and bringing international business into the city are doing a phenomenal job – and putting Scotland firmly on the map of the international business and leisure market.

- See more at: https://www.investinedinburgh.com/invest-blog/saco-apartments-edinburgh/#sthash.JBE6xmzD.dpuf