KKR, Silverback and Schroder Real Estate Hotels (a division of Schroder Real Estate created following the acquisition of Algonquin Management Partners) have acquired the Forest Hill Hotel La Villette and the adjoining restaurant operated under the Hippopotamus banner. This acquisition is the first performed by Schroder Real Estate Hotels since its acquisition of Algonquin Management Partners.
Forest Hill is a 250-room, 4-star establishment located at 28 Avenue Corentin Cariou, Paris. The La Villette area in Paris is undergoing substantial transformation and will host several sporting events during the upcoming Olympic Games in Paris in 2024. Following the acquisition, the hotel will benefit from a renovation programme, including a refurbishment and new branding. Schroder Real Estate Hotels is the appointed manager of the hotel. La Villette was acquired from Forest Hill Group.
Stéphane Obadia, Head of Investments and Rodolphe Frégé, Investment Director at Schroder Real Estate Hotels, said:
“The capacity and generous common areas of this Parisian hotel asset, located just at Porte de la Villette metro station and in front of the Cité des Sciences, offer multiple repositioning opportunities on which our team will be able to express all the know-how of Schroder Real Estate Hotels.”
Guillaume Cassou, Member and Head of European Real Estate at KKR, said:
“We are pleased to continue our partnership with the Schroder Real Estate Hotels team and to acquire our first hotel in Paris, a particularly attractive hotel market.”
As part of this transaction, the Forest Hill Group has been assisted by BNP Paribas Real Estate Hotels & Transaxio as sales advisers. KKR, Silverback and Schroder Real Estate Hotels were advised by Gide on the legal aspects. KKR’s investment was made through its Real Estate European Partners fund.
Bruno Juin, Managing Director Hotels at BNP Paribas Real Estate and Guy Boulô, Managing Director at Transaxio Hotels, said:
“This transaction reflects the strong appeal of Paris to investors in a context of strong recovery. Hotel investors, such as Schroder Real Estate Hotels, keep on acquiring assets offering high value creation potential through renovation works and a move upmarket, thus betting on the solid fundamentals offered by one of the most visited cities in the world.”
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