Global investment firm Eurazeo has announced the sale of a 22-hotel portfolio in France by its 70%-owned subsidiary, Grape Hospitality.
The portfolio, primarily consisting of economy hotels, was acquired by a consortium of a hotel operator and a real estate investor.
This strategic move aligns with Grape Hospitality's plan to focus on higher-end upper midscale and upscale hotel segments across Europe.
Grape Hospitality, a leading hotel owner, operator, and investor, now owns and operates 63 hotels and manages 22 with over 10,000 rooms for third parties in seven European countries through franchise agreements.
Pierre Larivière, Partner – Real Estate at Eurazeo, stated: ‘This key transaction underscores our commitment to strategically reposition our portfolio company Grape Hospitality and enhance its focus on upper-midscale and upscale segments. By transitioning these 22 hotels to new ownership, we are not only optimizing our asset base but also crystallizing the value of the entire Group. This move aligns with our long-term strategic plan to drive sustained growth and value.’
Frédéric Josenhans, CEO of Grape Hospitality, added: ‘The disposal of this 22-hotel sub-portfolio in France marks a new milestone for Grape Hospitality, eight years after its creation. It completes a first value creation cycle for these hotels and allows Grape Hospitality to further refocus on transitioning towards the management of upper midscale and upscale hotels where customer services are highly value-generative, leveraging on our strong operational expertise. The Group will also accelerate its development in emerging new markets with high underlying growth, including through The People and Demeures de Campagne brands and concepts.’
This transaction is consistent with Eurazeo's strategy of transforming and developing its real estate portfolio through operational and repositioning efforts, while also exploring innovative segments.
The sale price represents a substantial premium to the portfolio's book value as of 31 December 2023. Following the transaction, Grape Hospitality has distributed approximately 75% of the total equity invested by its shareholders.
Eurazeo has €35.4 bn in diversified assets under management, investing on behalf of institutional and private clients across private equity, private debt, real estate, and infrastructure strategies, totaling €25 bn.
