Grape Hospitality, which is 70% owned by Eurazeo Real Estate, is in exclusive talks to sell 23 hotels in France to a consortium formed by a hotel operator and a real estate fund.

This represents a significant shift in Grape Hospitality's focus towards mid-range and upscale market segments.

The sale is expected to be finalised by the end of the year, aligning with Grape Hospitality’s strategy to enhance its assets.

Eurazeo expects to net around €35m ($37.79m) from the sale, subject to adjustments based on the final closing accounts.

This move is set to streamline Grape Hospitality's offerings and capitalise on its asset optimisation efforts.

Grape Hospitality manages a substantial European hotel portfolio, including hybrid living spaces.

With 85 owned and 22 managed hotels, the company operates over 10,000 rooms across seven European countries.

Since its inception in 2016, Eurazeo has worked with Grape Hospitality to transform the portfolio through strategic repositioning and diversification into new segments.

The anticipated deal could result in a 15% premium over the portfolio's last recorded value in Eurazeo's books as of 31 December 2023.

Eurazeo Real Estate managing director Pierre Larivière said: “We are pleased to announce the expected sale of this portfolio, showcasing Grape Hospitality's assets’ high quality and strong appeal in a market with solid fundamentals.

"This transaction would demonstrate the operational and real estate expertise of Eurazeo and Grape Hospitality teams.”