Red Ribbon Fund Management and Phoenix Asset Management have teamed to set up a Green Hotel Fund.
The fund, which aims to raise around £200 million, will target prime hotel development sites, new build hotels, the refurbishment/repositioning of existing hotels and/or the conversion of existing buildings such as offices into hotels.
The green fund will consider ESG at every stage of the property lifecycle and will aim to reduce embodied emissions during both the development and operational phases, with the target of achieving the highest ESG accreditations.
The Green Hotel Fund will target key cities such as London, Edinburgh, Manchester, Liverpool, Glasgow, Birmingham and Leeds, with other regional cities to be considered on a case-by-case basis.
Phoenix and Red Ribbon expect hotels in the fund to open from 2024 to 2025, based on a build programme of between 2 to 3 years from acquisition, depending on the scale and location of each project.