Bain takes stake in struggling French group

PARIS – Private equity giant Bain Capital has invested into Les Hôtels de Paris (part of Machefert Group), an owner and operator of boutique hotels in France, to emerge from receivership. Les Hôtels de Paris owns 18 hotels, with 17 centrally located in Paris and one in St Tropez. Three of the upscale hotel group’s Paris addresses will be sold to help pay down its debt.

Last month, law firm White & Case LLP advised Bain Capital on the refinancing of Les Hôtels de Paris, a French high-end hotels operator listed on Euronext Paris, by way of a subscription to super senior bonds for an amount of approximately €135 million.

This refinancing was completed within the framework of a combined restructuring plan approved by the Paris Commercial Court for the benefit of Les Hôtels de Paris, which includes both a reorganization plan and an asset disposal plan, to settle the liabilities of the company and finance the development of the group.

The bonds are secured by the post money privilege and a security package, including the entering into of a concerting shareholders’ agreement with the Machefert family (controlling shareholder).

Les Hôtels de Paris was advised on the Bain investment by Wingate Investment Bank. White & Case served as legal advisor, PwC served as financial and tax advisor, HPM served as technical advisor, CBRE served as commercial advisor to Bain Capital.

Just last week, Bain Capital, in partnership with Columbia Threadneedle and QuinSpark Investment Partners, signed a definitive agreement to acquire for €300 million the 957-key Pullman Paris Montparnasse from Unibail-Rodamco-Westfield (“Unibail”), a leading European retail REIT.

Built in 1974, the Pullman Paris Montparnasse has already undergone a comprehensive refurbishment which completed in 2021, with over €216 million invested to modernize its facilities, including extensive upgrades to guest rooms, common areas and technical infrastructure.