Extendam, Bpifrance and Solanet ink major French hotel deal

Private equity players Extendam and Bpifrance alongside Solanet Gestion Hôtelière have completed the acquisition of SCSP, a family-owned holding company that controls, operates and manages a large portfolio of hotels in France. 

Financial details were not disclosed, but local media place the deal in the €100 mln range.

The historical shareholders of SCSP remain in the capital with the new investment structure taking a minority stake. To date, this is the largest French transaction of the year in terms of portfolio size, according to the joint venture.

The portfolio, built up over 40 years, includes 12 budget, limited service and full service properties and nearly 1,200 rooms, as well as a future hotel under construction with around 100 rooms.

Diversified portfolio
The assets include 10 operating properties and a forward funding scheme, spread over three geographies (Lyon and its metropolitan area, Geneva, Chalon-sur-Saône).

The properties 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, Vefa in Caluire et Cuire.

The acquiring party will embark on a repositioning strategy, including a comprehensive asset management programme and major renovation works.

Taking over management of the portfolio, operator Solanet Gestion Hôtelière is a family-owned company that has been investing in the hotel industry for some 30 years in France and abroad.

Bertrand Pullès and Maxime Durand, responsible for investment at Extendam, said: 'Our discussion with the SCSP group begun in the midst of the health crisis and was very constructive.

'We shared a common goal and a tried and tested approach to the strategies family groups in the hotel industry. The context in which the transaction was set up was quite favourable given the scarcity of assets and transactions in the Lyon region and the scarcity of available land in the Geneva area.'

'We are delighted to take part in and support a transaction that ensures the continuity of a remarkable family business, with an inter-generational handover that will give the SCSP group a new dynamism that will undoubtedly result in significant value creation,' added Ménelé Chesnot, senior investment director, and Vincent Groeber, senior investment officer at Bpifrance.

'We are very happy to continue our adventure with Solanet Gestion Hôtelière, Extendam and Bpifrance. This merger will enable our group to move up a gear, while retaining this family spirit. It is the guarantee of a bright future in for growth and value creation,' concluded Philippe Imberton, chairman of the SCSP group.


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