Three Hills pumps further €30m into Castellet Hospitality

Castellet progresses the acquisition of three hotels in the South-East of France with the new investment.

  • Castellet Hospitality is a budget and midscale hotel group
  • The financing round will increase Three Hills’ commitment to Castellet to over €90 million
  • Three Hills provides preferred capital  to businesses in the European middle market

Three Hills Capital Partners has agreed to provide up to €30 million of follow-on capital in Castellet Hospitality, a hotel group operating in the South-East of France.

The financing round by Three Hills Capital Solutions IV will increase the firm’s commitment to Castellet to over €90 million.

The new investment comes as Marseille-based Castellet progresses the acquisition of three hotels in the South-East of France: Novotel Lyon Confluence, Hôtel de Mougins and B&B Saint Jean de Maurienne. The transactions will bring an additional 261 rooms to the hotel group, increasing the current portfolio by 16 percent, and taking total locations to 25, according to a press statement.

“Our latest €30 million round in Castellet reaffirms our dedication as a long-term investor in the company and our interest in the hospitality sector,” said Victor Benazech, managing director at Three Hills “As this new injection of capital underscores our partnership, it will support Castellet’s ambitious acquisition strategy, fortifying their presence in the South-East of France.”

Three Hills provides preferred capital  to businesses in the European middle market. The firm has €2.3 billion of assets under management and has offices in London, Milan, New York and Luxembourg.