Schroders Capital and private equity hotel specialist Extendam have completed the sale of the 4-star AC Hotel by Marriott Nice, France, to as-yet-unnamed international hotel owner and operator described as “a long-time partner of the Marriott Group”.
The 143-room hotel is located on the Promenade des Anglais in Nice and was managed by Schroders Capital under a franchise agreement with Marriott. The asset was 50% co-owned by funds managed by Extendam.
Since acquiring the hotel in June 2017, Schroders increased its value by creating a rooftop bar and obtaining approvals for additional meeting space and bedrooms.
Eastdil Secured oversaw the sale which Schroders said attracted a wide variety of French and international institutional investors.
“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,” said Jean-Marc Palhon, president of Extendam.
Extendam, a French private equity firm dedicated to budget and mid-range hotels in Europe, has a portfolio of 259 hotels with an asset value of €2.4 billion.