MH Limited Partnership acquires Paris hotel for EUR 141.5m

French holding company MH Limited Partnership has acquired the celebrated Hotel Prince de Galles from France's Independent National Social Security Fund for Mines for around EUR 141.5 mln.

Hotel Prince de Galles was built in 1928 in the Art Deco period and features 168 rooms. It is operated by US hotel chain Starwood Hotels and Resorts Worldwide, Inc. Located along the Avenue George V, the Hotel Prince de Galles is close to the Champs d'Elysées and the Arc de Triomphe.

The five-star hotel was put on the market at the end of March as part of the French government's ongoing drive to dispose of non-core assets, including property, according to Alexis Delprat, head of Savills' European hotels team, who advised MH Limited Partnership on the deal.

'Hotels like this don’t come on the market very often. The Prince de Galles is a landmark hotel in Paris and represents one of the largest trophy hotel asset transactions to date,' said Delprat at Savills, based in London.

Atisreal advised the seller.

Hotel sales, like other property sales, have slowed across Europe this year as financing conditions continue to tighten. As such, the sale of the Hotel Prince de Galles is one of the largest sales of its kind in France this year, according to Delprat. There have been just EUR6.1 bn worth of hotel sales in the EMEA region in the first nine months of the year, down 64% on the same period last year, with EUR17 bn of sales, according to Jones Lang LaSalle.