Global alternative asset manager Tikehau Capital has acquired the 4* Hotel California in the 8th arrondissement of Paris, through the second vintage of its pan-European value-add real estate impact strategy.
Financial details were not disclosed.
The 4* Hotel California had been closed for more than two years and has not benefited from any recent major renovations.
Located close to the Champs-Élysées Avenue in Paris, it will undergo ambitious renovation works and a commercial repositioning to cater to both the business and leisure clientele.
According to Tikehau, the asset should be able to take advantage of the dynamic Parisian hotel market in the run-up to the 2024 Olympic Games.
The acquisition of this 172-key hotel is part of a plan to rehabilitate and reposition under-utilised assets and is in line with Tikehau Capital's new value-add real estate investment strategy, which intends to tackle climate action, biodiversity and inclusive neighbourhoods.
Frédéric Jariel, co-head of Tikehau Capital's Real Estate business, said: 'We are very pleased to announce the first acquisition of our pan-European real estate strategy, which confirms, in our view, the relevance of our asset repositioning approach.
'We believe that the Hotel California is an iconic hotel of exceptional scale with extensive common areas. As with all our real estate asset transformations, we will pay particular attention to the materials used during the construction phase, the energy efficiency of the future building and the various environmental certifications applicable.'
