Extendam and Schroders Capital announce the sale of the Hotel Eiffel Blomet Paris to Financière M.P. Landowski
Extendam, the leading private equity firm focused on hospitality, and Schroders Capital have completed the sale of the Hôtel Eiffel Blomet.
The Eiffel Blomet is a 4-star, 87-room hotel at 78 rue Blomet in the 15th arrondissement of Paris. It includes a wellness area and an exceptional swimming pool. The hotel opened its doors in June 2017 following repositioning work by architects Vincent Bastie and Bruno Borrione. Schroders Capital Hotels team managed the establishment.
Since its acquisition in June 2018, the team has worked hard to position the hotel in the Parisian market. Effective revenue management along with granular cost control has enabled the hotel to significantly improve its performance during the holding period.
“We are proud of the work carried out since 2018 by the Eiffel Blomet teams, who enabled the establishment to achieve remarkable performances including during Covid-19 when the hotel’s attractiveness enabled it to maintain extremely satisfactory business and profit levels. The divestment also illustrates the resilience of hotel performance and asset values amid rising inflation and interest rates. We wish Financière M.P. Landowski as much satisfaction with this attractive asset as we experienced as its first shareholder, add Jean-Marc Palhon and Bertrand Pullès, Chairman and Deputy Managing Director of Extendam.
“The Hotel Eiffel Blomet Paris, which is 40% co-owned by funds managed by Extendam, has been performing well for several years and was one of the best performing Parisian hotels during the Covid-19 restrictions. This divestment, just under five years after its off-market acquisition, endorses Extendam’s value-add investment strategy and its approach to co-investing with hotel operators,” adds Matthieu de Lauzon, a Partner at Extendam.
“We are very pleased that our strategy has created value for our clients. The collaboration between the Schroders Capital asset management team and the hotel team hinged on sales performance and cost management. We are proud to hand over a successful Eiffel Blomet hotel to Financière M.P. Landowski,” says Benjamin Chiche, Deputy Head of Hotels at Schroders Capital.
The family office Cedar is also one of the sellers.
In this transaction, Financière M.P. Landowski was assisted by CBRE Hotels (buy-side), Beauval (financial advisor), Lamartine Conseil (M&A advisor), Octies Avocats (legal advisor), Muriel Damois-Blondel (corporate advisor), HCCE (technical consulting), KPMG (accounting and financial consulting).
Schroders Capital, Extendam and Cèdre were supported by Cabinet Arago (legal advice). Extendam, with a portfolio of 300 hotels in France and Europe representing an asset value of €3.3 billion as of 31 December 2022, is the leading French private equity firm dedicated to the economy and mid-scale hotel sector in Europe.
