In a landmark move that signals renewed confidence in European hospitality markets, Bain Capital has partnered with Columbia Threadneedle and QuinSpark Investment Partners to acquire the towering Pullman Montparnasse hotel from retail giant Unibail-Rodamco-Westfield, marking one of France's largest hospitality transactions this year.
The 957-room, 32-storey property adjacent to Gare Montparnasse represents a rare opportunity to secure institutional-grade hospitality assets in supply-constrained Paris. Built in 1974 and comprehensively refurbished in 2021 with over €216m invested, the 4-star hotel features rooms spanning 22-60m², positioning it 10% larger than local competitors in the affluent 14th arrondissement.
"European hospitality is one of our high conviction themes, where we see long-term secular demand tailwinds in acutely supply-constrained markets," said Rafael Coste Campos, Partner at Bain Capital. "The current macro dislocation is creating a rare window of opportunity to acquire strategic assets in Europe's main gateway cities."
What makes this acquisition particularly compelling for investors is the hotel's 4,520 m² of meeting and conference facilities with natural daylight, a premium offering that positions the property to capitalise on Paris's resurgent business travel and events sector. The potential addition of a 500m² spa and existing sky bar further enhance revenue diversification opportunities in a market where experiential hospitality commands premium pricing.
Columbia Threadneedle and QuinSpark will oversee asset management, implementing targeted capital expenditure programmes focused on optimising operating costs and improving energy performance. "This transaction highlights our ability to source and structure complex off-market opportunities," noted Marc-Olivier Assouline, Head of European Value-Add at Columbia Threadneedle.
The acquisition underscores private equity's growing appetite for European hospitality assets, with QuinSpark's Frédéric de Brem highlighting the strategic focus on meeting French Tertiary Decree requirements, a regulatory compliance angle that could unlock significant value for forward-thinking investors positioned ahead of mandatory energy efficiency upgrades.
People mentioned:
- Rafael Coste Campos, Partner, Bain Capital
- Marc-Olivier Assouline, Head of European Value-Add, Columbia Threadneedle
- Frédéric de Brem, Director, QuinSpark Investment Partners
Companies mentioned:
- Bain Capital - Global private investment firm
- Columbia Threadneedle - Investment management company
- QuinSpark Investment Partners - European investment platform specialising in hospitality
- Unibail-Rodamco-Westfield - European retail REIT (seller)
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