Hospitality-focused private equity firm Extendam has acquired Eurazeo’s stake in a Spanish hotel portfolio.
Eurazeo’s real estate strategy has sold its stake in FST Hotels, with three hotels located in Madrid and Barcelona, totalling 543 rooms.
Eurazeo first invested in the hotels in 2022 through a joint venture with an institutional investor. The portfolio initially comprised five hotels, which underwent an extensive transformation programme.
Prior to this latest stake sale, the joint venture divested its non-strategic regional assets.
Following the transaction, the remaining portfolio will continue to be operated by Eurazeo’s pan-European hotel platform, Grape Hospitality.
Eurazeo said the sale was completed at a valuation in line with its latest reported net asset value.
Over the lifetime of the investment, total distributions to the joint venture partners reached approximately €100m, with around €50m attributable to Eurazeo’s balance sheet, Eurazeo added.
Riccardo Abello and Pierre Larivière, co-heads Eurazeo real estate, said: “This transaction underscores Eurazeo’s Real Estate strategy commitment to transforming its portfolio companies by enhancing not only operational performance but also asset quality, with a focus on sustainable growth.
“It reaffirms Eurazeo’s operational excellence and real estate expertise. Finally, it marks the successful culmination of a partnership in a highly attractive European hospitality market, validating both our strategic vision and our execution capabilities.“
To read the latest IPE Real Assets magazine click here.
