EXTENDAM, BPIFRANCE AND SOLANET GESTION HÔTELIÈRE SIGN THE FRENCH HOTEL INDUSTRY’S LARGEST PRIVATE EQUITY TRANSACTION OF 2021
|From left to right: Maximilien Heude (JLL), Félix Putatti (Solanet Gestion Hôtelière), Bertrand Pullès (Extendam), Louis Solanet (Solanet Gestion Hôtelière), Timothée Hainguerlot (Solanet Gestion Hôtelière), Philippe Imberton (Chairman of the SCSP Group), Maxime Durand (Extendam) and Ménelé Chesnot (Bpifrance).
Extendam, Bpifrance and Solanet Gestion Hôtelière have finalised the acquisition of SCSP, a family holding company that owns, operates and manages a large portfolio of hotels in France. SCSP’s long-standing shareholders are retaining a minority stake in the new structure. It is the largest French transaction so far this year in terms of portfolio size.
The company’s portfolio was created over 40 years ago and is a coherent and balanced mix of twelve economy and mid-range hotels and almost 1,200 rooms, with another 100-room hotel currently under construction. The platform is driven by strong, identifiable international brands and boasts significant growth drivers and performance, just as the end of the health crisis is in sight.
A diverse and coherent portfolio
The portfolio includes 12 hotels, one of which is an off-plan acquisition, in three dynamic and complementary geographic areas (Lyon, Geneva and Chalon-sur-Saône). The hotels are the Crowne Plaza Lyon Cité Internationale, Golden Tulip Lyon Eurexpo, Première Classe Lyon Part-Dieu, ibis Lyon Carré de Soie, Campanile Lyon Est Bron Eurexpo, Kyriad Lyon Est Meyzieu, Première Classe Genève Aéroport Prévessin, Campanile Genève Aéroport Palexpo, Première Classe Chalon-sur-Saône, Campanile Chalon-sur-Saône, and an off-plan acquisition in Caluire-et-Cuire.
The hotels each have between 59 and 156 rooms and are ideally positioned on the economy (85%) or mid-range (15%) segments. They are strategically located to capture a large flow of customers and maximise their occupancy rate.
In the midst of the health crisis and following a very competitive marketing process led by the Hotels & Hospitality Division of JLL (a leading commercial real estate services company), Extendam, Bpifrance and Solanet Gestion Hôtelière entered into exclusive talks with SCSP to find a long-term strategy to strengthen the group based on identified growth drivers.
A clear roll-out strategy to anticipate the hotel industry of tomorrow, today
The project revolves around a comprehensive asset management programme, the key growth drivers of which are the major renovation work slated for all of the hotels, and increased capacity.
The portfolio is expected to experience robust growth under its new operator, Solanet Gestion Hôtelière, combining increased revenues and higher operating margins. Solanet Gestion Hôtelière is a family-run business, which has been investing in the French and international hotel industry for the past 30 years.
“The discussions we launched with the SCSP group during the health crisis have been extremely constructive insofar as we share common values and a proven framework of strategies for family-run hotel groups.
The context for acquiring the asset was favourable given the scarcity of assets and transactions in the Lyon region and the dearth of available real estate on the French/Swiss border near Geneva,” say Bertrand Pullès and Maxime Durand, who are responsible for the investment at Extendam.
“We are very pleased to be playing a role in this transaction, which will ensure the continuity of this remarkable family business. We are confident that the intergenerational handover will bring a new lease of life to the SCSP group, no doubt resulting in significant value creation,” point out Ménelé Chesnot, Senior Investment Manager and Vincent Groeber, Senior Investment Officer at Bpifrance.
“We are proud of this acquisition, which provides us with a unique opportunity to create a base in the South-East of France, alongside a family that we have known and respected for many years. It also enables us to strengthen already fruitful ties with our partners Extendam and Bpifrance. We are hoping to maintain this positive momentum,” adds Timothée Hainguerlot, Solanet Gestion Hôtelière.
“We are delighted to continue our adventure with Solanet Gestion Hôtelière, Extendam and Bpifrance. This link-up will help our group move up a gear without losing the family spirit that guarantees a vibrant future in terms of growth and value creation,” comments Philippe Imberton, Chairman of the SCSP group.
“JLL is very excited to be assisting SCSP with its disposal strategy. Despite the unprecedented health crisis, we have proven our ability to create inventive, flexible solutions that satisfy all of the company’s long-standing shareholders. The buyers are getting a toehold in Lyon’s dynamic and much sought-after real estate and hotel market, in a business underpinned by strong fundamentals. We are in no doubt that with their experience and expertise they will continue to make a success of these establishments,” concludes Maximilien Heude, Senior Associate at JLL Hotels & Hospitality Group.