Eurazeo Real Estate team announces that its 70% owned subsidiary, Grape Hospitality, has entered into exclusive negotiations to sell a portfolio of 23 hotels located in France, representing the majority of Grape Hospitality's economic portfolio, to a consortium formed by a hotel operator and a real estate fund.
This sale would mark an important milestone in the platform's strategy, allowing the group to further refocus on the mid-range and upscale segments and to crystallize its asset enhancement work.
Grape Hospitality owns and operates 85 hotels and also manages 22 hotels, totalling more than 10,000 rooms operated under franchise contracts across seven European countries. Since Grape Hospitality was established in 2016, Eurazeo Real Estate and the group's management have closely collaborated to transform and develop the hotel portfolio, notably through operational and real estate repositioning and partial diversification of activities into innovative segments.
This transaction, which is expected to be finalized by the end of the year, would materialize a 15% premium to the value of the portfolio in Eurazeo's accounts as of December 31, 2023. It is expected to generate net proceeds of approximately €35m for Eurazeo's balance sheet, subject to possible adjustment based on the closing accounts.
Pierre Lariviere, Managing Director, Eurazeo - Real Estate, stated: “We are pleased to announce the expected sale of this portfolio, showcasing Grape Hospitality's assets’ high quality and strong appeal in a market with solid fundamentals. This transaction would demonstrate the operational and real estate expertise of Eurazeo and Grape Hospitality teams.”
Image source - Pexels.
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