Information on the target

Groupe Altica is the leading independent budget hotel chain in the southwest of France, operating ten properties with a total of 560 rooms. Established in 1992, the group has focused on providing quality services at affordable prices, catering to both tourist and professional clientele. Following the passing of Bernard Thé, one of its historical leaders, the founding families sought an experienced individual to rejuvenate the brand.

Pierre Courtois de Viçose, a graduate of the prestigious École Hôtelière de Lausanne, has been approached to spearhead this new phase. With an extensive background in the hospitality industry, he has previously managed or acquired multiple hotels in the Toulouse region and along the Côte d'Azur, as well as in the Caribbean.

Industry overview in the target’s specific country

The budget hotel sector in France has been experiencing continuous growth, driven by a rising demand for affordable accommodation options by both domestic and international travelers. With an increasing number of consumers seeking value for money, businesses in this segment are now prioritizing customer service and amenities to compete effectively.

Additionally, the rise of digital platforms for booking accommodations has reshaped the landscape of the hospitality industry in France. Travelers are increasingly relying on online resources to compare prices and read reviews, driving hotels to enhance their online presence and offerings.

Moreover, the French tourism industry has shown resilience in its recovery post-COVID-19, with expectations for continued upward trends as travel restrictions ease. This resurgence presents a prime opportunity for budget hotel chains like Altica to capture a larger share of the market.

As the environmental and sustainability awareness among travelers grows, budget hotels are also adapting by implementing eco-friendly practices, thereby appealing to the conscience of modern consumers. Innovations and renovations are becoming critical in the pursuit of attracting a socially responsible clientele.

The rationale behind the deal

The acquisition under a management buy-in (MBI) structure is strategically driven, allowing Pierre Courtois de Viçose, in collaboration with Apicap, to instigate a transformation plan for Groupe Altica. The deal aims to leverage Courtois's hospitality expertise to enhance the hotel's operational performance and customer offerings through substantial refurbishments and an expanded accommodation capacity.

Furthermore, by retaining significant involvement from the founding families, the continuity and heritage of the brand remain intact while still embracing innovative growth strategies. This balance between tradition and modernity is seen as a pivotal element for the future success of the Groupe Altica.

Information about the investor

Apicap is a leading French investment company with a strong focus on private equity, primarily targeting growth capital investments across various sectors, including hospitality. Their experience and strategic insight into the market make them an invaluable partner in driving Groupe Altica’s development plans.

With a commitment to supporting innovative projects, Apicap aims to enhance their portfolio through strategic acquisitions that align with emerging trends. Their collaborative approach with management teams contributes to sustainable growth, enabling companies to execute their business strategies effectively.

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The acquisition of Groupe Altica presents a promising investment opportunity, given the company’s established presence in the growing budget hotel market in France. Pierre Courtois de Viçose's extensive industry experience combined with Apicap's investment backing places the group in a favorable position to capitalize on emerging market trends.

The planned renovations and expansion initiatives are likely to attract a diverse clientele, resulting in enhanced occupancy rates and increased revenue flow. Additionally, integrating modern technologies and eco-friendly practices should further elevate the brand’s appeal in a competitive marketplace.

However, it is crucial for the new management to remain vigilant in adapting to the evolving industry landscape, particularly in maintaining competitive pricing while ensuring exceptional service quality. The continued involvement of the founding families can provide valuable insights into navigating challenges, further solidifying the investment's potential for success.

In conclusion, assuming effective execution of the growth strategy, the acquisition could very well position Groupe Altica as a significant player in the French budget hotel sector, reflecting an astute investment decision for both Pierre Courtois de Viçose and Apicap.

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