Eurazeo and PSP Investments Form European Hotel Venture
Posted on 02/07/2022
Eurazeo and the Public Sector Pension Investment Board (PSP Investments) announced the establishment of a strategic partnership. It will initially focus on investing in hotels across Europe, targeting large assets or portfolios well-positioned to benefit from the sector’s recovery. As a first step in this new partnership, the partners plan to invest up to €300 million of equity in
hotel assets or portfolios across Europe, which offer significant potential to unlock value through upgrades and targeted asset management initiatives. Eurazeo and PSP Investments will invest equal amounts in the joint venture, which is set to benefit from Eurazeo’s well-established track record in the sector, the recognized execution capability of both firms and their commitment to sustainable growth.
The partnership agreed on the acquisition of the venture’s first investment, FST Hotels – a Spanish hotel group that owns and operates an 800-room portfolio across five hotels, primarily located in Madrid and Barcelona. The hotel group, operating under the Ayre brand, will be acquired from Grupo Empresas Matutes and El Corte Inglés. The hotels will undergo refurbishment, repositioning and rebranding to take full advantage of the anticipated hotel industry recovery following the COVID-19 pandemic.
Completion of this transaction remains subject to clearance by the relevant antitrust authorities and should take place by the end of March 2022.
Since establishing Eurazeo’s real estate division in 2015 until January 2022, Eurazeo has invested almost €900 million of equity from its balance sheet in real estate opportunities targeting properties and companies with underlying real estate assets across Europe.
