Benson Elliot Capital Management and French hotel private equity investor Algonquin have teamed up to buy the
The purchase of the 170-bedroom hotel is the second deal in the
Accor will continue to manage the hotel, which is located near
It is the sixth acquisition in 18 months for Algonquin and is the 23rd hotel in its portfolio as well as its first investment in the
Benson Elliot Real Estate Partners III – a €505m (£418m) equity fund closed last year and will begin investing in the second half of 2010.
Benson Elliot senior partner, Trish Barrigan, said: “The global recession and subsequent property market decline have created the opportunity to buy hotels at meaningful discounts to replacement cost and, we believe, at or near the bottom of the operational cycle.
“We’re actively looking at similar opportunities that represent good value today, but where there is also scope to add value through targeted capex spending and proactive management strategies.”
Algonquin chief executive, Jean-Philippe Chomette, said: “
“We would be very pleased to contemplate other similar opportunities in conjunction with Benson Elliot across
Mayer Brown, CMS and Brodies acted for Benson Elliot and Algonquin;
bridget.oconnell@estatesgazette.com
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