Morgan Stanley spin-off, Proprium, made a 20-times multiple on its €65 mln equity investment in 2007 in Motel One.
The €1.25 bn price paid to Proprium for the 35% stake by its majority shareholder One Hotels & Resorts, values the international budget chain at €4.1 bn and a 2023 EBITDA valuation multiple of 14 times.
It is the latest sign of a strong rebound in hotels following the Covid pandemic, and coupled with other actual and prospective deals this year, makes hospitality a contender for the healthiest sector in real estate.
GIC is one global real estate investor which has been taking profits in the strong market for hospitality or examining options to do so. It's a shareholder in CitizenM and last week it emerged CitizenM's owners are exploring a sale which would value the boutique chain at around €4 bn - double the value five years ago when GIC bought in.
GIC also sold Berlin's Hotel de Rome last month for €146 mln in the largest property deal in the city so far this year, according to brokers. And the Singapore SWF is buying too, notably as a shareholder with APG in Archer Hotel Capital, which recently paid circa €250 mln to Kennedy Wilson for Dublin's The Shelbourne.
Other hotel deals so far this year include: Blackstone's sale of the Hilton Paris Opera; Statuto Group's acquisition of The Mandarin Oriental in Paris (Statuto was also the buyer of Hotel de Rome); and Starwood's £800 mln acquistion of 10 Radisson Blu hotels.
Five investment managers are raising capital this week for a range of strategies, including Swiss Life's link up with True North on co-living, Fidelity's impact climate fund and hotel specialist Pygmalion's new hotel opportunity fund.
We also track all the recently completed financings and new assets on the market.
