EXTENDAM has completed the sale of the 82-key Residence Inn Didot Montparnasse, marking the conclusion of a strategic investment cycle focused on value creation. Located in Paris’ 14th arrondissement, the aparthotel underwent a transformation to enhance its positioning in the market, aligning with evolving guest expectations.
Strategic transformation and market repositioning
Acquired in May 2021 by investment funds managed by EXTENDAM, in partnership with SOHOMA, the property previously operated under the Citadines brand. A comprehensive renovation plan was implemented to modernize the facility and elevate its market standing.
– Renovation timeline: Work began in September 2022 and concluded in June 2023, upgrading the property to meet Marriott standards under the Residence Inn brand.
– Concept and design enhancements: The transformation retained the aparthotel concept, catering to both business and leisure travelers. Common spaces were redesigned, improving functionality and creating a warmer, more inviting atmosphere.
– Expanded services: A 24/7 snack service and optimized access to the interior garden further enhanced the guest experience.
“This sale is a perfect illustration of our ability to identify high-potential assets, transform them in a targeted manner and optimize their value in a dynamic market environment. Thanks to a successful move upmarket and modernization of the spaces, we and SOHOMA’s teams were able to reposition this establishment to meet the expectations of a demanding clientele, whether business or leisure”,- Cécile Leclerc and Maxime Durand for EXTENDAM.
Paris aparthotel market: A resilient and growing sector
The 14th arrondissement offers a strategic location, with direct connectivity to Gare Montparnasse, key business hubs, and cultural landmarks. This has strengthened demand for flexible accommodation, appealing to both corporate travelers during the week and leisure visitors on weekends.
The Paris aparthotel sector remains highly resilient, supported by:
– A diverse customer base ensuring steady demand across economic cycles.
– The growth of the “bleisure” trend, merging business and leisure stays.
– Increased international visibility from events like the 2024 Olympic and Paralympic Games, further boosting investor interest.
Sale and financial performance
EXTENDAM sold the property to SOHOMA, its operational partner, which is securing new financing while maintaining management of the asset. The transaction aligns with a strong market environment, delivering an Internal Rate of Return (IRR) of approximately 15%, meeting investment targets.
