Joint-Venture of Benson Elliot, Walton Street, Algonquin book into pan-European hotel portfolio for €420 million

A joint venture between private equity real estate fund managers, UK-based Benson Elliot and US-based Walton Street Capital, L.L.C. (“Walton Street”) in partnership with Algonquin SA (the “JV”), has acquired a pan-European hotel portfolio comprising of eight prime hotels in seven major cities across five countries, the Prime Europe Hotels (the “Portfolio”) for approximately €420 million. The Portfolio was purchased out of Host Hotels & Resorts Inc.’s European Joint Venture(the “Vendor”).

The eight freehold properties total 2,308 rooms in Venice, Paris, Milan, Rome, Warsaw, Nuremberg and Brussels, located adjacent to key demand generators, either in metropolitan city centres, high-growth commercial corridors or leisure destinations. Assembled between 2006 and 2011, the Portfolio has a profitable trading profile and strong cashflow.


The Portfolio comprises the following assets:
· The Pullman, Paris Bercy
· The Westin Europa and Regina, Venice
· The Westin Palace, Milan
· The Sheraton, Rome
· The Sheraton, Warsaw
· Le Méridien Grand Hotel, Nuremberg
· The Marriot Executive Apartments, Brussels
· Renaissance Hotel, Brussels

The assets have benefited from substantial investment in recent years, and significant opportunities remain for the JV to create further value through the implementation of targeted asset management initiatives.

Trish Barrigan, Benson Elliot Senior Partner, said:
“This is a significant transaction for Benson Elliot, concluded with trusted partners like Algonquin, who we worked closely with on our Novotel Edinburgh Park investment. The portfolio is of exceptionally high quality, with opportunities to grow income and value in a sector attracting increasing attention from investors.”

Robert Bloom, Senior Principal at Walton Street, said:
“This Portfolio represents a high-quality collection of full-service branded assets that is being acquired at both an attractive yield and significant discount to replacement cost, at what we
believe is an opportunistic point in the investment cycle. We are excited about this transaction and look forward to working with our JV partners, Benson Elliot and Algonquin, to maximize
value.”

Jean-Philippe Chomette, CEO at Algonquin, said:
“We are very pleased to be associated in this acquisition with two major international investment partners, such as Benson Elliot and Walton Street. The inherent quality of each asset in this
portfolio, their prime locations and the first class operators of these hotels will help us further optimize their value through material refurbishment programs and enhanced operational efficiencies.”