French private equity investor Extendam has enjoyed a busy September 2025, completing a number of European hotel transactions.
The investor, which often works in partnership with others to share risk and ensure a great mix of skills on a project, has recently acquired a hotel in Portugal, while also selling and taking on a new development in Spain. The moves are not unusual for this dynamic investor, which likes to back hotel developments in markets across western Europe.
Investing alongside a new partner
The latest addition to the portfolio has seen Extendam partner for the first time with Highgate, a long established name in hospitality investment and management. While a major player in the USA, Highgate has also established itself in Europe, with hotel projects in the UK and Portugal.
Together, the pair have acquired the Hilton Porto Gaia in a joint venture. The 194 room hotel opened in 2021, and was sold by owner Sabersal, and trades under a franchise agreement with Hilton, being the Hilton brand’s second property in the country.
Plans are for Highgate to take over management of the hotel, which will remain Hilton branded. Highgate already operates a portfolio of 17 hotels across the Algarve, Lisbon, Sesimbra and Porto regions, with representation of Marriott, Hilton and IHG brands among the properties.
At the start of the month, Extendam and partner Continuum Hospitality Group sold the Ibis Budget hotel at Madrid Airport, after completing the project and opening the hotel in January 2024. The pair bought the site in 2019, and developed the hotel specifically to meet the needs of the economy Accor brand.
This disposal followed a previous sale in the summer, also in Madrid. That saw the investment partners dispose of the 230 room economy hotel in the city centre, offering it to the market free of branding. Once again, the investors developed the hotel, taking it through launch in 2022 to stabilisation to a point where other investors would be happy to take the asset on.
Also during September, the company acquired a site in Seville. There, in partnership with co-investor Panoram Hotel Management and with Grupo Insur, it has plans to develop a four star hotel with 184 rooms. The plans envisage completion in early 2028, delivering a hotel with restaurant and bar, rooftop swimming pool, fitness centre and meeting rooms. The design has an expectation of meeting the BREEAM Very Good certification, ensuring lower running costs in use. An international brand will be lined up to operate the completed property.
Investing in key city markets
“Seville is a strategic city, combining tourism appeal, economic vitality, and market depth,” said Ines Haack of Extendam. “We already operate a hotel in the northern part of the city, which reflects our in-depth understanding of its hospitality ecosystem.”
Over the years, since first opting to invest in hotels in 2012, Extendam founder Jean-Marc Palhon has held a strong conviction around the hospitality accommodation niche. Extendam has completed deals involving more than 390 hotels across Europe, with over 31,000 rooms.
