European hotel operator, developer and investor, The Student Hotel (TSH), has acquired a turnkey refurbishment project in the Compans Caffarelli area in the centre of Toulouse, for around €34 mln.
The counterparty is a joint venture of French listed developer Icade and academic institution Ynov.
TSH’s total investment in the Toulouse project is in excess of €45 mln and will allow the extension and the refurbishment of an existing former barracks into 12,000 m2 of student accommodation and hotel with 354 high profile rooms, design common areas and a rooftop with a pool and 360-degree views on the city.
The construction of the hotel began this month and it is due to open in the summer of 2021.
The Toulouse acquisition is in line with The Student Hotel’s strategy of engaging in large urban re-generation projects. The group plans to acquire, develop and invest in more than 4,000 rooms in France by 2022.
TSH entered the French market in 2015 with a pilot site in Paris La Défense. The Toulouse development will incorporate the full TSH brand experience and will be followed by a similar second hotel of circa 300 rooms that is due to open in the 19th district of Paris in 2022.
Sophie de Becdelièvre, TSH Real Estate Director France, said: 'We are convinced of the strong potential of Toulouse for the TSH concept. Due to the quality of its higher education institutions, Toulouse is the second most popular place to study in France after Paris and almost a quarter of all the residents in the city centre are students. The city also benefits from a solid and dynamic economy which will drive strong demand for our hotel and extended-stay rooms.'
It is the latest deal in the company’s €2.0 bn investment strategy that will more than triple the number of TSH hotels in operation across Europe to 38, from the current 12, over the next five years.
TSH Berlin has its official opening ceremony on October 9 and this will be followed shortly afterwards by the opening of its largest hotel, with 819 rooms, in Vienna in the first quarter of 2020.
Denis Montrelay, investment director and member of the executive board at TSH, said: 'Italy, Spain and Portugal are high on the list of new openings, alongside the German-speaking markets, in the near future.'