Extendam, Schroder Real Estate Hotels and 2 other minority interests make joint acquisition of the design boutique hotel Eiffel Blomet in central Paris

Extendam and Schroder Real Estate Hotels (a division of Schroder Real Estate created following the acquisition of Algonquin Management Partners) have acquired the newly opened Art-deco style hotel “Eiffel Blomet”. This acquisition is the second acquisition in Paris performed by Schroder Real Estate Hotels since its acquisition of Algonquin Management Partners.

The Eiffel Blomet is a 87-room, 4-star boutique hotel located at 78 rue Blomet, Paris. The hotel opened in June 2017 after 18 months of repositioning works conducted by the renown architects Vincent Bastie and Bruno Borrione. Its attractive design and qualitative repositioning works acting as a great product differentiation in comparison to the current supply in the surrounding area.

Located within easy reach from all River Seine’s left bank leisure, corporate and MICE drivers, this scarce asset in central Paris benefits from a critical size for a boutique hotel with a great room’s mix enabling to maximize yield management and minimize costs.

Schroder Real Estate Hotels is the appointed manager of the hotel and is currently entertaining discussions with a couple of operators to potentially operate the boutique hotel under a franchise agreement.

Frédéric de Brem, Head of Schroders Real Estate Hotels and Pierre-Louis Bellanger, Investment Director at Schroder Real Estate Hotels, said:

“The qualitative features of this boutique hotel and its generous pool size are great USPs for the central Paris market. It represents a great value for money product within easy reach to all key Parisian demand drivers thanks to its excellent connections to public transportation. Finally, this brand-new hotel product has been very nicely renovated and offers an optimal layout for efficient operations.

Bertrand Pulles, Associate Director of Extendam, said:

“We are pleased to continue our partnership with the Schroder Real Estate Hotels team and to acquire another core French asset after the AC Marriott Nice and Radisson Toulouse Blagnac.”

As part of this transaction, the vendors have been assisted by JLL Hotels. Extendam and Schroder Real Estate Hotels were advised by Arago on the legal aspects.

Katell Bourgeois, SVP Corporate Transactions, JLL Hotels, said:

“With operating indicators showing a strong recovery, Paris continues to attract investors with very diversified profiles and origins.  Opportunities to acquire unencumbered freehold assets (real estate and business) of this quality and capacity are rare and Schroders Real Estate Hotels once again demonstrates its ability to identify them”.

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