Eternam and Atypio Aquire Three French Hotels from 123 IM

Main Photo: The Mercure Tours Sud, one of the three hotels acquired by Eternam

Date: March 2021

Locations: Joue-les-Tours, Lille and Montesson, all in France

Names: Mercure Tours Sud, Hotel Campanile Lille and Hotel Campanile Montesson

No. Keys: 76, 76 and 55 207 in total

Seller: 123 IM, who finance the development of French and European companies. Since 2001, 123 IM has deployed €2 billion in more than 730 companies.

As part of its Club Deal offer, 123 IM previously invested, alongside the Somnoo Group, in the acquisition of a portfolio of three 4-star hotels, located in Germany, with 458 rooms under the Mercure brand, bringing their investment with  the Somnoo Group, specialising in the fields of hotel management and investment, to 24 establishments.

They also supported LVH Hôtels et Résidences group in the construction of a mixed 4 * hotel-residence establishment with 63 rooms + 25 apartments, located in Valloire, in Savoie. The company is headed by President, Xavier Anthonioz.

Buyer: French real estate investors Eternam and operator Atypio Group have acquired a portfolio of three French hotels with 207 rooms for a reported €15 million from French investment managers 123 IM. The full-service properties include the 76-room Mercure Tours Sud in Joue-les-Tours, the 76-room Hotel Campanile Lille and the 55-room Hotel Campanile Montesson. The assets will be operated by Atypio.

Atypio manages some 15 hotels in France, mainly under the Accor Mercure and Ibis brands, with the odd Holiday Inn, Best Western and Louvre brands.

Pursuing its strategy of expanding premises and funds in the hotel sector, Eternam led the acquisition of three establishments under Accor and Louvre Hotels franchises from 123 IM.

These transactions were carried out in co-investment with the Atypio group , which also manages these three establishments.

The hotelier FPCI Alcyon has acquired two hotels operated under the Campanile brand . These two assets, located in the southern suburbs of Lille and in Montesson, have more than 130 rooms in the 3 * segment and are ideally located in the heart of predominantly business destinations.

Eternam also supported the takeover of the Mercure Tours Sud hotel on behalf of a private investor club deal. This 4 * establishment in the heart of the Loire Valley castles benefits from a balanced clientele mix thanks to its 1,000 sqm of seminar spaces and it’s spa with swimming pool. The drop in attendance linked to the health crisis will make it possible to accelerate the investment program and to carry out a renovation of the rooms and the well-being area.

These three assets represent for Eternam the opportunity to position itself in a hotel portfolio that has demonstrated its resilience throughout 2020 . They illustrate the good resistance of regional eco and midscale establishments in the context of an overall decline in hotel attendance, and their capacity for rapid rebound outside periods of confinement.

“We are pleased with this renewed partnership with the Atypio teams,” indicates Emmanuel Béraud-Sudreau , deputy director of Eternam.

These acquisitions also illustrate the strong convictions of our teams in the economy and mid-range ranges in the provinces and our renewed confidence in the overall recovery of the hotel market in the medium term.

This operation confirms the initial strategy of the FPCI Alcyon in a market marked by the decline in bank financing : availability of equity, responsiveness in a private sale and seizing of opportunities in a context of crisis.

“After our participation in the Brach Madrid project and a first foothold in the luxury hotel industry, these two new acquisitions perfectly match Alcyon’s diversification strategy alongside renowned operators. Despite very diverse ranges and locations, Evok like Atypio stand out as experts in their market and trusted co-investors.”

Drawing on its investment experience in the hotel sector, the real estate subsidiary of the Cyrus group is launching the FPCI Alcyon. Intended for private investors, the fund will acquire hotels, mainly in France.

In recent years, Eternam has deployed more than €300 million in the hotel industry alongside leading players in the sector. The strategy of the FPCI Alcyon is to allow investors to position themselves on value-creating projects. On the one hand, this will involve the takeover of existing hotels, with a business plan playing on operational and financial levers, and on the other hand, the development of establishments in highly relevant locations. These investments in hotel business assets, most often associated with buildings, will be made with hotel operators co-investing in capital.

Price: €15m

Price per Key: €72,463

THPT Comment: Eternam steps up its hotel development in the economy and mid-range segments. Great buy for them in terms of price.

First Seen: Eternam press release

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