German lender Aareal Bank has announced the closing of a financing agreement in the form of a senior loan to the owner of the five-star Sofitel Paris Le Faubourg hotel.
The borrower is Hoche Eight SAS, an investment vehicle held by a consortium of Asian investors.
The funding is in the upper double-digit million euro range. The consortium acquired the hotel in 2016.
Located in the heart of Paris between the Place de la Concorde, the Champs-Élysées and the elegant Rue du Faubourg Saint-Honoré, the Sofitel Paris le Faubourg is a 148-room-and-suite hotel managed by Accor.
'Paris is one of the most sought-after destinations by international travellers and hotel investors alike,' commented Bettina Graef-Parker, managing director - Special Property Finance of Aareal Bank. 'The Sofitel Paris Le Faubourg is renowned as one of the top hotels not only in the French capital but in the whole country. We are delighted to have been given the opportunity to refinance this top asset with experienced real estate investors.'
Hoche Eight SAS was advised by Stephenson Harwood AARPI, PwC Société d'Avocats and Workman Turnbull. Aareal Bank was advised by De Pardieu Brocas Maffei on legal matters and HVS on valuation.