• Bridge Street Accommodations London Limited
Deals:

Bridge Street Accommodations London Limited

21 December 2020

Sector

Serviced Accommodation/Global

Business description

BridgeStreet Accommodations London Limited (“BridgeStreet UK”) is a serviced accommodation provider operating an agency business for the EMEA region and leasing and managing several properties across the UK. The business forms part of the global BridgeStreet group, which also includes entities in the US, Singapore and Paris. The group has been backed by Versa Capital Management LLC since 2014.

Situation

The COVID-19 pandemic hit the business travel market particularly hard, with national lockdowns and closed borders temporarily bringing business travel to a halt.   Revenues and cash inflows reduced to unsustainable levels across the sector. BridgeStreet UK’s existing leases made it difficult to manage costs to match the reduced levels of occupancy in leased properties.

BDO Role

In light of the current situation, BDO was approached to assist the board of BridgeStreet UK consider its restructuring options. BDO’s Special Situations M&A Team was engaged to urgently market the business with the aim of protecting as much of the business as possible from liquidation. BDO ran an accelerated transaction, approaching a range of financial and strategic trade acquirers.

Outcome

Multiple offers were received from both trade and financial parties, with the final outcome being the pre-pack sale of the agency business to a trade party and competitor, National Corporate Housing Inc. (“NCH”). NCH is an experienced operator in the serviced apartments sector, and this transaction fits well with their growth strategy as they look to expand its UK & EMEA presence. The transaction preserved many jobs and led to value recovery for creditors in the administration.