FdM, Credit Agricole close EUR 170m Campanile hotel deal

An 80/20 joint venture of Crédit Agricole Assurances' Predica and Pacifica insurance units and Foncière des Murs (FdM) has finalised the purchase of a portfolio of 32 Campanile hotels from the Louvre Hôtels group for just over EUR 170 mln.

The assets are all located in France and offer a total of 2,400 rooms. Louvre Hôtels is retaining ownership of the business assets and management of the hotels, which will continue to be run under the Campanile brand. The deal includes the signature of 12-year firm leases, renewable six times, with triple net rents calculated based on revenues.

'This real estate partnership between FdM, Predica and Pacifica forms part of the companies' strategy of diversifying in a buoyant sector offering healthy returns,' the buyers said in a joint statement on Wednesday.

FdM and Predica first announced in March that they were stepping up their partnership in the hotel sector with the acquisition of the assets. Some 45% of the properties are in the Paris metropolitan area, 32% are in southern France and 23% in the north of the country.

The transaction comes just six months after Predica and FdM's purchase of an Accor hotel portfolio for EUR 378 mln.