Versailles' Trianon Palace bought from Blackstone by French investors

Michel Ohayon, CEO & Chairman of La Financière Immobilière Bordelaise, announced on Hospitality ON that he bought Hotel Waldorf Astoria Trianon Palace in Versailles from Blackstone through the fund's "Hospitality Investment Versailles" vehicle.

Michel Ohayon, Chairman & CEO of the Financière Immobilière Bordelaise (FIB), announced on Hospitality ON that he bought the Waldorf Astoria Trianon Palace de Versailles from US investment fund Blackstone. The famous French Palace will continue to be operated by the Hilton group under its Waldorf Astoria brand, as the new owner is keeping the existing management contract. While investors declined to comment on the amount of the transaction, rumours from deal insiders suggest the purchase to be worth between €130 and €150 million. The purchase was financed under a 50% debt / 50% equity ratio.

"We are delighted with this new purchase, as the hotel is a local landmark with a rich history, is in excellent condition, and benefits from "Parisian" occupancy rates and solid daily rates, that has room for growth. The Clémenceau ball room hosted the Treaty of Versailles negotiations", said Michel Ohayon. Although the hotel recently benefitted from a €40 million renovation program, the new owner wants to bring his personal touch: "We have several ideas in mind but no defined plan. We are notably working on the opportunity to create an outstanding bar on one of the hotel's terraces, dedicated to the hotel clientele as well as to the general public. We want to create a wonderful tea room that would be appealing to women in particular, and also capitalize on the hotel's excellence in creating pastries, for which we are one of the top 5 French hotels. We also have enhancement projects to make the decoration of Spa Guerlain even more refined, and to host large events through meeting & events facilities that would be unparalleled in Paris. We also plan to expand the hotel capacity through large family suites."

Already owner of the Grand Hôtel de Bordeaux and minority stakeholder in other French hotels, Michel Ohayon plans to continue investing in the hotel industry in the years to come: "After being cautious through the crisis and having cleaned up our house, we are now fully ready to invest and are watching the market, especially given the current environment which drives interesting opportunities". The FIB group said it was notably interested in investing in Paris and the Riviera, and in two other major French cities.  "Our ambition is not to create a brand of our own but to continue expanding our portfolio of world-class hotels in France. Maybe we will continue our expansion with the Waldorf Astoria brand, as it is already our partner in this hotel", said Mr. Ohayon.