Schroders Capital and Extendam Sell AC Hotel by Marriott Nice
Main Photo: The AC Hotel by Marriott, just sold by Schroders/Extendam JV
Date: January 2022
Name: AC Hotel by Marriott Nice
Location: Promenade des Anglais, Nice, France
Number of Keys: 143
Seller: Schroders Capital and Extendam JV, who acquired the hotel in 2017
Buyer: Unnamed Owner-Operator
Schroders Capital and Extendam have finalized the sale of the AC Hotel by Marriott in Nice located on the Promenade des Anglais. “The sale process, overseen by Eastdil Secured , had aroused the interest of a multitude of French and international institutional investors. The confirmed buyer owns and operates hotels on an international scale, specified the two players.
This four-star hotel has 143 rooms, two restaurants, a fitness room, as well as seminar spaces. It was managed by Schroders Capital under a franchise agreement with Marriott. Since the acquisition of the hotel in June 2017, the Schroders Capital team has added value to the asset, in particular by creating a “rooftop” bar, and by obtaining building permits to increase the capacity of the hotel by when it comes to meeting spaces and bedrooms.
“In close collaboration with Marriott, Schroders Capital was able to work on the operational and commercial reorganization of this unique asset to unlock its full potential and thus significantly increase its value. Building on the success of the strategy that we have put in place, we are happy to have been able to bring added value for our customers and to transmit this asset today to an international player in the hotel industry, owner-operator and partner of long-standing of the Marriott group ”, underlines Benjamin Chiche, Investment Director, Real Estate Hotels, Schroders Capital.
“The AC Hotel by Marriott Nice, 50% co-owned by funds managed by Extendam, had been performing well for several years, again demonstrated during the summer of 2021. This sale, completed a little less than five years after the acquisition of the hotel validates Extendam’s value add investment strategy and its co-investment policy with operators. Nice is a particularly attractive city that we know well from having acquired several establishments there. We still currently have several hotels there, two of which are also located on the Promenade des Anglais, ”adds Jean-Marc Palhon, President of Extendam.
Price: Undisclosed
THPT Comment: Good start to the year…would be interesting to know the turn was on what they paid/sold in the five years of ownership. Top-end (five star) hotels in the South of France still had fairly hefty price tags on them in 2021
First Seen: Business Immo
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