Eurazeo announces that its 70%-owned subsidiary, Grape Hospitality, has successfully sold a portfolio of 22 hotels located in France. This portfolio, representing the largest part of Grape Hospitality's economic hotels, has been acquired by a consortium formed by a hotel operator and a real estate investor.
This strategic operation marks a significant milestone in Grape Hospitality’s development, enabling the Group to further focus on the upper midscale and upscale segments across Europe.
This transaction also highlights Grape Hospitality’s and Eurazeo’s best-in-class operational expertise and asset management capabilities, crystallizing value for all stakeholders.
The disposal value represents a material premium on the portfolio’s value as recorded on Eurazeo's balance sheet as of 31 December 2023. Pro forma in this transaction, Grape Hospitality has distributed c. 75% of the total equity invested by its shareholders.
Pierre Lariviere, Partner – Real Estate, Eurazeo, declared: “This key transaction underpins our commitment to strategically reposition our portfolio company Grape Hospitality and enhance its focus on upper-midscale and upscale segments. By transitioning these 22 hotels to new ownership, we are not only optimizing our asset base, but also crystallizing the value of the whole Group. This move aligns with our long-term strategic plan to drive sustained growth and value, supported by Grape Hospitality management’s proven expertise and unique know-how. It also reaffirms the operational excellence and real estate expertise of our team at Eurazeo.”
Frederic Josenhans, CEO – Grape Hospitality, added: “The disposal of this 22 budget and economy hotels sub-portfolio in France marks a new milestone for Grape Hospitality, eight years after its creation. It completes a first value creation cycle for these hotels and allows Grape Hospitality to further refocus on transitioning towards the management of upper midscale and upscale hotels where customer services are highly value-generative, leveraging on our strong operational expertise. The Group will also accelerate its development in emerging new markets with high underlying growth, including through The People and Demeures de Campagne brands and concepts. I warmly congratulate our teams who are committed to the development of customer satisfaction, revenue growth, CSR transformation and financial performance. This transaction opens up new perspectives for the Group, and we thank our shareholders Eurazeo and AccorInvest for their continuous support since 2016.”
Written by Leon Goldwater for Europe Real Estate.
Image source - Pexels.
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