Henderson Park has acquired a portfolio of five hotels in France alongside asset management company Atream. The purchase was undertaken in two separate transactions comprising the acquisition, from French institutional investors, of the hotel properties historically operated via variable lease contracts and, simultaneously, the transfer of the operations by the hotel operator.
The portfolio will continue to be managed by Accor and comprises 645 rooms in mid-scale hotels built between 2000 and 2011 that are operated under the Novotel Suites brand, the select-service sub-brand of Novotel offering only double-double suites. While the hotels are in strong locations and have delivered robust operating performances, they have been historically underinvested on account of the separate ownership structures.
By consolidating the portfolio’s ownership structure, Henderson Park aims to capture the entire value creation arising from an asset management strategy targeting upgrading bedrooms and guest-facing areas to enhance the customer experience. The strategy will also include modernising the hotels’ technical equipment in an effort to improve energy efficiency, unlock operational cost savings and meet the Paris Agreement’s 2050 targets.
Christophe Kuhbier, Head of Investments, Europe, at Henderson Park, commented: “The hospitality sector continues to benefit from secular tailwinds with the number of travellers rising alongside visitor spend, having bounced back strongly since the Covid-19 pandemic. This acquisition adds to our European hotel portfolio, providing us with five well-located, income-producing hotels in compelling markets in France, which remains the world’s most popular destination for international visitors. The transaction presented a rare opportunity to re-assemble the hotel operations and properties of a sizeable portfolio in an effort to capture immediate and future marriage value. We are pleased to start a partnership with Atream who will work closely with Henderson Park’s hospitality team to implement our investment plan on this portfolio.”
Pascal Savary, Chairman at Atream, said: “We are very proud to complete this transaction alongside Henderson Park, a leading player in the international hotel market. This acquisition highlights our commitment to managing and enhancing strategic hotel assets in France. As the operating partner and asset manager, we will leverage our expertise to modernize and reposition this portfolio, in an effort to optimize its appeal and performance. This transaction is fully aligned with Atream’s strategy to establish itself as a leading hospitality partner and a key player in private equity. We look forward to working closely with Henderson Park and Accor to unlock the full potential of these properties.”
Image Source - Henderson Park.
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