Extendam and Catella acquire largest Holiday Inn in France at 'significant discount'

The companies said the transaction 'exhibits the ability for the two firms to navigate in a market which came to a standstill due to the pandemic, but which will remain driven by long-lasting fundamentals post-crisis'.

Situated in the immediate vicinity of Paris, by the newly built Tribunal Judiciaire, the Holiday Inn Paris Porte de Clichy is a midscale business-oriented hotel of 262 rooms, and one of the largest hotels in Paris’ conurbation. The property was acquired from a Swiss family office at a significant discount compared to pre-Covid prices, the buyer said, without disclosing the price.

Catella Hospitality Europe and Extendam believe there is significant value to be created, especially taking into consideration the general uplift of the micro location. Clichy is regarded as one of the most dynamic redevelopment areas next to Paris and already witnessed the emergence of numerous corporate offices and of premium residential projects. By January 2021, the neighbourhood will complete its rejuvenation with the extension of the metro line 14, part of the Grand Paris project.

Catella Hospitality Europe is taking the opportunity of the Covid-19 crisis to undertake substantial investments to upgrade the property which it will operate directly under franchise. 'This acquisition showcases the faith of industry experts in hotels as an attractive asset class which will keep delivering above-market returns,' Catella said in a statement. Despite the uncertainty which looms over the path back to normality, CHE believes that value-add opportunities will emerge from the current crisis for those investment companies with a clear strategic vision and the willingness to take disciplined risks.

The vendor was represented by DS Avocat and Christie & Co. The buyers were assisted by Herbert Smith Freehills, Mazars, Capstan, Edge Avocats, and Delpha Conseil.