Target Information

Basilique Hospitality is a hotel portfolio consisting of eleven properties, including both the real estate and operational aspects, totaling 836 rooms. The portfolio is primarily located in key cities in France, such as Paris, Saint-Quentin, Amiens, and Avignon, and predominantly features AccorHotels franchises, along with one Marriott franchised hotel. In 2023, Basilique Hospitality reported a revenue exceeding €22 million.

Initially acquired by Alboran and Trocadero Capital Partners in 2018, Basilique Hospitality was supported by a consortium of financial investors including Bpifrance (through the France Investissement Tourisme fund), IdiCo (formerly Omnes Capital), Picardie Investissement, and Rives Croissance.

Industry Overview in France

The hotel industry in France remains one of the most dynamic sectors in Europe, characterized by a robust tourist inflow and a diverse range of accommodations. In recent years, the French hospitality market has experienced significant growth, driven by both domestic and international tourism. The country continues to attract millions of visitors, making it one of the top travel destinations worldwide.

Despite facing challenges during the COVID-19 pandemic, the industry has shown resilience, with many hotel operators focusing on renovation and repositioning strategies to enhance their offerings. The post-pandemic recovery phase has led to increased consumer demand for high-quality and uniquely positioned hotel experiences.

In addition, the French government has implemented various support measures designed to assist the hospitality sector in navigating financial difficulties and rebuilding consumer confidence. These initiatives include subsidies, funding for renovations, and marketing campaigns aimed at boosting tourism.

Overall, as France continues to recover economically and the travel landscape evolves, the hotel industry is anticipated to grow further, driven by innovation and sustainable practices.

Rationale Behind the Deal

The recent acquisition of Basilique Hospitality by Alboran marks a strategic move to consolidate ownership and strengthen operational management within this high-quality hotel portfolio. Having demonstrated exceptional performance even during turbulent market conditions, Alboran aims to leverage its extensive management platform to optimize the operational capabilities of the hotels.

Moreover, the completion of this deal will allow Alboran to continue its ambitious investment plan, which includes improving operational efficiencies and enhancing environmental initiatives, ensuring long-term sustainability and profitability.

Investor Information

Alboran, founded by Yann Caillère, Jérôme Bosc, and Éric Omgba, has established itself as a significant player in the hospitality sector focused on adopting a patron-investor model. The company is known for its expertise in managing a multi-brand hotel portfolio while achieving substantial operational performance across its properties.

Since its partnership began in 2018, Alboran has proactively pursued strategies to revamp and elevate the quality of its hotels, notably by conducting renovations during the pandemic that positioned them to outperform projections upon the economic rebound.

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From an expert analytical perspective, the acquisition of Basilique Hospitality by Alboran presents a potentially sound investment opportunity. The portfolio's prime locations and strong revenue performance suggest a solid foundation for future growth. Furthermore, Alboran's proven track record in property management reinforces the belief that this acquisition could yield significant benefits.

With the ongoing recovery of the French hospitality sector and the increasing tourist influx, Alboran stands to leverage its existing assets effectively while capitalizing on new market opportunities. The commitment to enhance operational efficiencies and environmental practices aligns with current consumer trends toward sustainable tourism.

While there are inherent risks due to external economic factors, the strategic vision and operational capabilities of Alboran position it well to navigate such challenges. Overall, this acquisition appears to be a step toward solidifying Alboran's influence in the hotel industry and enhancing its competitive advantage.

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