Mount Kellett Said to Consider Sale of Paris's Biggest Hotelby
The owner of Paris’s biggest hotel is weighing a sale of the property, two people with knowledge of the matter said. The Le Meridien Etoile, a 15-minute walk west of the Arc de Triomphe, is valued at about 400 million euros ($450 million), they said.
Mount Kellett Capital Management LP, co-founded in 2008 by former Goldman Sachs Group Inc. executive Mark McGoldrick, has mandated Eastdil Secured LLC to explore a sale of the 1,025-room property, said the people, who asked not to be identified because the information is private.
Representatives of Mount Kellett and Eastdil declined to comment.
Mount Kellett, a New York-based investment firm, in May announced a deal with Fortress Investment Group LLC to share management of its funds after being hit by losses in its energy investments.
European hotel deals rose 79 percent to a record 23 billion euros in 2015 as investors sought to take advantage of rising tourism and steady income provided by overnight stays, according to data compiled by CBRE Group Inc. Paris hotel values are rising despite a dip in occupancyfollowing November’s terrorist attacks, said Geoffrey Marsan, a real estate analyst at Green Street Advisors in London. Long-term demand for hotel rooms in Paris will remain "healthy," Marsan said.
Le Meridien Etoile is the biggest hotel in central Paris by number of rooms. The Disney Newport Bay Club Hotel, in the Coupvray suburb, is bigger with 1,098 rooms.
The Meridien brand is part of the Starwood Hotels & Resorts Worldwide Inc chain. The Etoile was built in 1972, according to a Le Meridien spokeswoman.