Angelo Gordon-EQ JV Sells Paris Hotel to Korea’s Sono International for $130M

Springtime in Paris may be a few weeks away, but hospitality deals continue to bloom as South Korea’s Sono International has become the latest Asian investor to acquire a hotel in the City of Light with a €120 million ($130.2 million) buy.

Sono Hospitality BV, the European arm of the Korean hotel operator, purchased the Hotel Dame Des Arts on the left bank of the Seine in central Paris from a joint venture of London-based EQ and Manhattan’s Angelo Gordon, market sources confirmed.

The two asset managers had acquired a portfolio comprising the 109-key Hotel Dame Des Arts and four other Paris hospitality assets for a reported €181 million in 2019. Sono’s €120 million acquisition price for its maiden European property was first reported by London’s React News.

“We are excited to continue with our global expansion plans and to debut in Europe in one of the most exciting global cities of the world,” Sangkil Park, managing director of Sono Hospitality BV, said Monday in a release.

Olympic Trophy

France was among the few European markets to see an upswing in hotel transactions last year, according to data from MSCI, as interest gathered ahead of Paris hosting this year’s Summer Olympics.

The announcement of Sono’s trophy comes after Mingtiandi reported Sunday that a Blackstone fund had sold the Hilton Paris Opera near the Gare Saint-Lazare to Singapore’s City Developments Ltd in a deal valuing the asset at €244 million ($264 million).

Located within walking distance of landmarks like the Notre Dame de Paris Cathedral and the Louvre, the Hotel Dame Des Arts was known as the Holiday Inn Paris St Germain des Pres when it was picked up by EQ and Angelo Gordon over four years ago, alongside the Holiday Inn Paris Notre Dame, Holiday Inn Paris Versailles Bougival, Courtyard by Marriott Boulogne and Courtyard by Marriott Paris Roissy Charles de Gaulle.

The rebranded property reopened its doors in early 2023 after an extensive renovation, said property consultancy CBRE, which advised Sono on the acquisition translating to €930,233 per key. The hotel touts a 360-degree rooftop with unobstructed views of the Eiffel Tower and the Pantheon.

“CBRE has a track record advising clients across Europe and Asia on the global hospitality market, and we’re delighted to have worked with Sono on their much-anticipated European debut,” said Jileen Loo, senior director for operational real estate at CBRE UK.

Overcoming Hurdles

Notorious for its high barriers to entry, the Paris hotel market performed well in 2023 as Europe maintained its status as a favoured destination for global travellers, said Sami Mendil, head of hotel investment properties for France at CBRE.

“The Summer Olympics will see tourism in Paris gain further momentum, and we expect this to be reflected in hotel demand levels for the rest of the year,” Mendil said.