Schroders Capital, ExtendAM and Cèdre sell Paris hotel

Schroders Capital’s hotels team, private equity specialist ExtendAM, and family office Cèdre have finalised the sale of the Hotel Eiffel Blomet Paris to Financière M.P. Landowski for an undisclosed amount.

The Eiffel Blomet is a four-star boutique hotel with 87 rooms, located in the 15th arrondissement of Paris, comprising a wellness area which includes a swimming pool.

The hotel opened its doors in June 2017, after repositioning work was undertaken by architects Vincent Bastie and Bruno Borrione. The hotel was managed by Schroders Capital.

Since the acquisition of the hotel in June 2018, Schroders Capital’s hotels team has repositioned the hotel as a popular destination on the Parisian market. The implementation of an effective revenue management policy, coupled with astute cost management, made it possible to significantly increase the hotel’s net profit during the holding period.

Benjamin Chiche, deputy head of Hotels, Schroders Capital, said: ‘Based on the success of the strategy that we have put in place, in collaboration with our real estate hotel asset management team and the hotel’s management team, both at the commercial and cost management levels, we are pleased to have been able to create added-value for our clients as we today hand over the Hotel Eiffel Blomet to Financière M.P. Landowski.’

Jean-Marc Palhon, Chairman of ExtendAM, commented: ‘This sale operation also illustrates the resilience of hotels which include both the building and business assets in terms of performance and valuation, including during periods of inflation and rising interest rates. We hope Financière M.P. Landowski achieves the same degree of satisfaction with this fine asset, which we were able to support as the first shareholder.’

Marie-Pierre Landowski, president of Financière M.P. Landowski, said that the acquisition is the first deal as part of a strategy to build up a hotel portfolio. ‘The acquisition of the Hotel Eiffel Blomet is a great opportunity to diversify our already existing activities. This first asset formalises our desire to build a collection of hotel establishments with unique characteristics, such as the Hotel Eiffel Paris Blomet,’ said Landowski. ‘Through this transaction, Financière M.P. Landowski is asserting itself as a new entrant to the Parisian hotel market and is also demonstrating its operational and financial capacity to make significant off-market acquisitions using its own funds.’

As part of this operation, Financière M.P Landowski was assisted by CBRE Hotels (buy-side), Beauval (financial advice), Lamartine Conseil (M&A advice), Octies Avocats (legal advice), Muriel Damois-Blondel (corporate advice), HCCE (technical consulting), KPMG (accounting and financial consulting).

Schroders Capital, ExtendAM, and Cèdre were supported by Cabinet Arago (legal advice).


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