Schroders Capital and private equity hotel specialist Extendam have completed the sale of the AC Hotel by Marriott Nice.
Located on the Promenade des Anglais in Nice, France, this 4* hotel with 143 rooms, two restaurants, a gym and meeting rooms, was managed by Schroders Capital under a franchise agreement with Marriott.
Since acquiring the hotel in June 2017, the team at Schroders Capital has significantly enhanced its value through the creation of a popular rooftop bar and obtaining approvals to add additional meeting space and bedrooms.
The sale process, overseen by Eastdil Secured, attracted a wide variety of French and international institutional investors. The confirmed buyer is an international hotel owner/operator.
Benjamin Chiche, Investment Director, Real Estate Hotels, Schroders Capital, said :
"Working closely with Marriott, Schroders Capital was able to add significant value to both the operational and commercial aspects of this asset and unlock its full potential. Following the successful implementation of our business plan, we are pleased to deliver significant value for our clients and to transfer this asset to an international hotel owner-operator and long-time partner of the Marriott Group."
Jean-Marc Palhon, President of Extendam, added :
"The AC Hotel by Marriott Nice, 50% co-owned by funds managed by Extendam, has been performing well for several years and demonstrated this again during the summer of 2021. This sale, made a little less than five years after the off-market acquisition of the hotel, validates Extendam's value add investment strategy as well as its choice to co-invest with operators. Nice is a particularly attractive city that we know well and one in which we have acquired several assets. We still currently own several establishments there, including two assets also located on the Promenade des Anglais."
Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $70 billion* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2021 (including non-fee earning dry powder and in-house cross holdings)
With more than 180 investments over the past 10 years and a portfolio of 259 hotels in France and Europe, representing an asset value of 2.4 billion euros as of June 30, 2021, Extendam is the leading French private equity firm dedicated to budget and mid-range hotels in Europe.