Investment fund Three Hills Capital Partners has announced a new investment in the French mid-market hotel operator. This is the first acquisition led by the fund in France and the €61.5 million investment will serve to accelerate Castellet’s acquisition strategy.
The move represents the first investment of the fourth vehicle raised by THCP. The fund's investment strategy is to provide bespoke capital structures to mid-market European companies. For this transaction, Three Hills Capital Partners has partnered with Groupe Sofival, who are providing additional financing and expertise in hotel management.
Castellet Hospitality was founded by Gilles Larrivé in 2017. Headquartered in Marseille, the company is present throughout south-eastern France and has a portfolio of 22 hotels (four of which were acquired in this transaction). Its hotels operate mainly under the Accor, Louvre Hotel Group, Marriott, and B&B Hotels franchise brands.
The financing and operational support provided by Three Hills Capital Partners will allow Castellet Hospitality to pursue its growth plans and acquisition strategy. THCP's experience in forming partnerships will also be put at the company’s service to support its expansion plans.
Castellet Hospitality has all the hallmarks of a typical THCP transaction, as it offers us the opportunity to support a leading company, founded by an experienced entrepreneur with ambitious growth plans. With many opportunities already in place, we are delighted to partner with Mr. Larrivé to support Castellet Hospitality in its M&A strategy while consolidating its position as the leading hotel group in the PACA region. With our fourth fund, we are pleased to continue to enable entrepreneurs to unlock the full growth potential of their businesses through our flexible financing solutions.
Victor Benazech, French Market Manager at Three Hills Capital Partners
THCP has a deep understanding of the opportunities in the hospitality industry across all European markets. With the strong sector expertise of its team and its flexible offering, THCP was a natural choice as a partner for Castellet Hospitality as we enter our next phase of expansion. We are delighted to be working alongside a team whose ambitions are a perfect match for our own as we accelerate our strategy of growth through long-term acquisitions and continue to explore expansion opportunities.
Gilles Larrivé, Founder & CEO of Castellet Hospitality
