Essence Hotel is accelerating the expansion of its network and branching out into the business segment
Subscriptions for the 15 million bond to support the growth of the boutique hotel group will open on 27 August
Founded just four years ago, Essence Hotels is set to close 2026 with a turnover of 10 million euros, 400 employees and nine properties, six of which opened this year alone. “My ambition is to reach ten hotels by 2027,” explains Antonio Cafarelli, CEO of Essence Corporate Company, the Luxembourg-based company that controls Essence Hotels.
This growth has certainly been driven by the golden age of tourism in Italia, and in particular by the growing demand for high-end accommodation and hospitality services, but also by the group’s growth strategy. “‘The formula works,’ observes Cafarelli, who worked for 30 years in the hospitality and tourism sector before launching his brand. ‘The idea was born in 2022 from my desire to channel many years of experience across various areas of the sector into a form of hospitality that is as close as possible to the guest and their experience. Our tagline is ‘feel like home’: we want our guests to feel at home in a modern way – that is, ‘chic’, ‘lively’ and ‘unconventional’ – in an environment that is sophisticated yet informal and relaxing.” These are boutique hotels with between 60 and 120 rooms, where the concepts of guest service, care and attention are fundamental.
The properties (with the exception of two, which have been acquired) are managed under long-term (approximately 20-year) lease agreements.
The second factor driving growth is (and will be) financial in nature: the company has just issued a €15 million bond on the Vienna Stock Exchange to support future development projects, with a fixed annual coupon of 9 per cent, a nominal value of €100 per bond, with subscriptions opening on 27 August and the bond maturing on 27 August 2031. The transaction was handled by Francesco Guarnieri, Founder of Guarnieri & Partners Law Firm, acting as legal adviser, and Luca Lo Po, who leads the Capital Markets team at Ashurst Perkins Coie.
The development plan involves the acquisition and refurbishment of further resorts, in line with the model of an international hotel chain, but with a strong focus on Italian destinations, although overseas destinations considered ‘essential’ for the type of clientele that Essence Hotel targets are not ruled out. The group has already opened a 26-room resort on the island of Zanzibar and is looking at locations such as Kenya and the Maldives.
