Eurazeo Real Estate, which is publicly listed on the Euronext Paris stock exchange, will sell 23 hotels in France from its 70%-owned Grape Hospitality subsidiary to a consortium formed by owners Swiss Life and Amundi and operator B&B Hotels.
Officials said the deal, which is expected to conclude by the end of the year, would “materialize a 15% premium to the value of the portfolio in Eurazeo’s accounts as of Dec. 31, 2023. It is expected to generate net proceeds of approximately €35 million ($38 million) for Eurazeo’s balance sheet, subject to possible adjustment based on the closing accounts.”
BusinessImmo, CoStar's French commercial real estate news division, reports the buyers are Swiss Life and Amundi, and French hotel firm B&B Hotels will operate the 23 hotels. Swiss Life and B&B Hotels declined to comment on the potential acquisition, and Amundi did not respond for comment.
According to a press release from Eurazeo, Grape Hospitality owns and operates 85 hotels and manages a further 22 hotels, with a combined total of more than 10,000 rooms. Grape Hospitality was founded in 2016.
Pierre Larivière, Eurazeo’s managing director, said the expected sale of this portfolio showcased the high quality and strong appeal of Grape’s hotels in a market with solid fundamentals.
“This transaction would demonstrate the operational and real estate expertise of Eurazeo and Grape Hospitality teams,” he said.
In 2022, Eurazeo partnered with the Public Sector Pension Investment Board, a Canadian pension-investment manager, to invest in hotels across Europe, “targeting large assets or portfolios well-positioned to benefit from the sector’s recovery.”
The two entities said they would invest €300 million in the deal. The first acquisition was for Spanish hotel group FST Hotels, which at that time owned and operated five hotels and 800 rooms under the Ayre brand.
The sellers in that acquisition were Grupo Empresas Matutes and department-store chain El Corte Inglés.
On its website, Eurazeo said it has €35 billion of diversified assets under management, “including €24 billion on behalf of institutional and private clients through its private equity, private debt, real estate and infrastructure strategies.”