News for the Hospitality Executive
Sator’s Private Equity Fund Investing €30 million
in the Baglioni Hotel Group;
Roberto Polito Will Continue to Lead the Portfolio of 14 Hotels
Milan, 19 September 2008. Sator and Baglioni Hotels Group today announced that they have signed an agreement under which Sator will acquire a 40% shareholding in Baglioni Hotels, one of Europe’s leading luxury hotel groups.
Under the agreement Sator’s Private Equity fund will invest €30 million via a reserved capital increase at the conclusion of which the current holding company will retain a 60% shareholding in the Group. Sator’s investment forms part of a broader strategic partnership in the context of the Baglioni Hotels Group’s business development plan. This has as its objective the doubling of the Group’s network of hotels and will see the Baglioni brand enter the Middle East, Asia, the United States and Russia. The project will focus on expansion via management contracts and selective acquisitions of trophy buildings. To date, the Group has already secured agreements to manage luxury hotels under the Baglioni name in Dubai, Budapest and Marrakesh, and is in the process of concluding agreements in Mumbai and Sri Lanka.
The Baglioni Hotels Group currently consists of 14 luxury boutique hotels in Italy, France and the UK positioned in prime locations including Rome’s Via Veneto, Venice’s Piazza San Marco, Milan’s Via Della Spiga, the Champagne and Côte D’Azur regions in France and London’s Kensington. In Italy and in the UK the Group operates under the Baglioni name and includes four hotels that are members of the prestigious “The Leading Hotels of the World” chain, while in France all its hotels are part of the exclusive Relais & Chateaux collection.
Following Sator’s investment, the Baglioni Hotels Group will continue to be led by the family of its founder, Roberto Polito, and the existing management team who have been instrumental in achieving its growth and brand recognition over the past 35 years. Sator will apply both its management and financial expertise in support of the Group’s business plan, which also foresees an eventual stock exchange listing. Joint real estate initiatives in new markets with the objective of developing an integrated approach to both properties and hotels management are also envisaged.
Among other resolutions in terms of governance, Matteo Arpe, CEO of Sator, will be one of two Sator representatives to join the Baglioni Hotels Group Board.
Roberto Polito, Chairman of the Baglioni Hotels Group said: “Baglioni Hotels has grown rapidly in recent years and today embodies Italian luxury lifestyle in the European hotel sector, with a positioning that has now reached that of the world’s leading international luxury groups. I am proud that a figure of Matteo Arpe's standing in the Italian finance sector and the Sator team have chosen to invest in Baglioni Hotels Group to support our growth plans. Sator is without a doubt the ideal partner in terms of a shared business philosophy and their outstanding financial and management experience.”
Commenting on the investment Matteo Arpe said: “The Baglioni Hotels
Group represents the very best of Italy’s entrepreneurial spirit. We are
particularly proud that Sator’s first investment will be in support of
their international expansion project that will further establish the Baglioni
name as one of the leading Italian brands in the world.”