Real estate investment company Eurazeo Real Estate is in exclusive talks to sell most of its 70% owned hotel subsidiary Grape Hospitality's French properties.
The buyer is a consortium consisting of a hotel operator and a real estate fund.
The 23 hotels make up the bulk of Grape Hospitality's budget-friendly portfolio. Grape Hospitality manages over 10,000 hotel rooms across seven European countries, with 85 hotels they own and operate directly, and another 22 under franchise agreements.
The sale is expected to close by year-end and bring in a premium of 15% over the value listed for the hotels in Eurazeo's records at the end of 2023. This translates to roughly €35 mln added to Eurazeo's finances, though the final amount might change slightly based on final accounting.
Pierre Larivière, managing director, Eurazeo - Real Estate, said: ‘We are pleased to announce the expected sale of this portfolio, showcasing Grape Hospitality's assets’ high quality and strong appeal in a market with solid fundamentals. This transaction would demonstrate the operational and real estate expertise of Eurazeo and Grape Hospitality teams.’
This sale is a strategic pivot for Eurazeo, allowing them to concentrate their resources on their core competency: mid-range and upscale hotels. It also marks the successful execution of a multi-pronged strategy by Eurazeo and Grape Hospitality management to optimize the portfolio. This strategy involved operational improvements, strategic property repositioning, and the introduction of innovative hospitality experiences.
Eurazeo has €35 bn in diversified assets under management, including €24 bn on behalf of institutional and private clients through its private equity, private debt, real estate, and infrastructure strategies.
