Eurazeo, PSP Investments form €300m European hospitality JV

Eurazeo and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, has formed a strategic partnership to focus on investing in hotels across Europe, targeting large assets or portfolios well-positioned to benefit from the sector’s recovery.

As a first step in this new partnership, the partners plan to invest up to €300 million ($343 million) of equity in hotel assets or portfolios across Europe that offer significant potential to unlock value through upgrades and targeted asset-management initiatives. Eurazeo and PSP Investments will invest equal amounts in the joint venture, which is set to benefit from Eurazeo’s established track record in the sector, the recognized execution capability of both firms and their commitment to sustainable growth.

The partnership already has agreed on the acquisition of the venture’s first investment — FST Hotels, a Spanish hotel group that owns and operates an 800-r