Information on the Target

Bain Capital, a prominent global private investment firm, announced its investment in Les Hôtels de Paris, part of the Machefert Group, on September 22, 2025. Les Hôtels de Paris is a distinguished owner and operator of boutique hotels in France, boasting a portfolio of 18 prime establishments, including 17 located centrally in Paris and one in St. Tropez. This investment underscores Bain Capital's focus on acquiring high-quality real estate assets within the fragmented European hospitality market.

The partnership with Les Hôtels de Paris not only enhances Bain Capital's footprint in France but also showcases its ability to provide complex real estate capital solutions effectively. The firm aims to leverage its extensive expertise to drive operational excellence and unlock significant value across the hotel portfolio owned by Les Hôtels de Paris.

Industry Overview in France

The French hospitality industry is one of the largest in the world, catering to millions of tourists annually. The sector has historically been characterized by its variety, from luxurious hotels to unique boutique establishments, offering guests a multitude of experiences. France remains a top tourist destination, attracting visitors for its culture, cuisine, and history, which significantly boosts demand in the hospitality sector.

In recent years, the industry has also seen trends towards sustainability and unique guest experiences, with consumers increasingly valuing authenticity and local engagement during their travels. Boutique hotels, such as those operated by Les Hôtels de Paris, exemplify this shift, appealing to travelers seeking personalized services and immersive experiences.

Despite challenges posed by global economic conditions, particularly post-COVID recovery phases, the outlook for the hospitality industry in France remains cautiously optimistic. Increasing domestic travel and the gradual return of international tourists are expected to drive growth in the sector, making investments in well-positioned hotels a strategic advantage.

The Rationale Behind the Deal

Bain Capital’s investment in Les Hôtels de Paris is a strategic move aimed at capitalizing on the ongoing recovery and growth of the French hospitality market. By investing in a reputable group with a solid operational foundation, Bain Capital seeks to leverage its resources to drive improvements and expand the brand's presence within the region. This alliance is expected to reinforce Les Hôtels de Paris' position as a leading independent boutique hotel operator.

The collaboration also aligns with Bain Capital’s commitment to investing in quality assets that possess the potential for operational enhancements and sustainable growth. The deal's rationale is further substantiated by the unique positioning of Les Hôtels de Paris in highly coveted locations, ensuring robust revenue streams in the long term.

Information About the Investor

Bain Capital, founded in 1984, is recognized as one of the leading private investment firms globally. With around $185 billion in assets under management, the firm has a well-established presence across five strategic investment focus areas: Private Equity, Growth & Venture, Capital Solutions, Credit & Capital Markets, and Real Assets. Bain Capital prides itself on its culture of collaboration and conviction, enabling the firm to innovate and unlock new investment opportunities.

With 24 offices and more than 1,850 employees worldwide, Bain Capital possesses deep sector expertise and robust capabilities that contribute to creating exceptional outcomes for its investors and the greater community. As a partner in the hospitality sector, Bain Capital is well-positioned to drive operational enhancements and deliver long-term value in its investments.

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The investment by Bain Capital in Les Hôtels de Paris appears to be a strategic and potentially lucrative opportunity, given the strong fundamentals of the French hospitality market. The emphasis on boutique, experiential hotels aligns perfectly with current consumer trends, making this acquisition a timely decision for Bain Capital. The commitment from both parties to operational improvements hints at future growth that could significantly boost profitability.

Moreover, the backing of a reputable private equity firm like Bain Capital may raise the profile of Les Hôtels de Paris, attracting both more customers and potential strategic partnerships. The firm’s expertise in driving operational efficiencies is likely to enhance the quality of services offered, which is critical in maintaining a competitive edge in the boutique hotel sector.

In conclusion, this partnership is set to reinforce Les Hôtels de Paris' market position and accelerate its growth trajectory, ensuring it stands out in a competitive landscape. If managed well, this investment may prove to be a strong asset for Bain Capital, fostering better returns through strategic positioning and operational improvements.

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