A new hotel division created by Real Estate has bought its first asset in partnership with KKR and Silverback.
Schroder Real Estate Hotels has joined with US private equity firm KKR and hotel investment fund Silverback to buy the Forest Hill Hotel La Villette and the adjoining restaurant operated under the Hippopotamus banner in Paris.
La Villette was acquired from Forest Hill Group for an undisclosed sum.
Forest Hill is a 250-room, 4-star establishment located at 28 Avenue Corentin Cariou. The hotel is expected to be renovated and rebranded.
St茅phane Obadia, the head of investments and Rodolphe Fr茅g茅, investment director at Schroder Real Estate Hotels, said: 鈥淭he capacity and generous common areas of this Parisian hotel asset, located just at Porte de la Villette metro station and in front of the Cit茅 des Sciences, offer multiple repositioning opportunities on which our team will be able to express all the know-how of Schroder Real Estate Hotels.鈥�
Schroder Real Estate Hotels is the appointed manager of the hotel.
Guillaume Cassou, a member and head of European real estate at KKR, said: 鈥淲e are pleased to continue our partnership with the Schroder Real Estate Hotels team and to acquire our first hotel in Paris, a particularly attractive hotel market.鈥�
KKR鈥檚 investment was made through its Real Estate European Partners fund.
