Crédit Mutuel Equity provides growth capital to hotel owner-operator somnOO
- Consolidating and expanding the hotel portfolio
- somnOO plans to invest both in individual acquisitions and in portfolio acquisitions
- Scaling and institutionalization of the somnOO platform
Crédit Mutuel Equity, the international direct investment company of Crédit Mutuel Alliance Fédérale, is entering into an investment partnership with somnOO and providing growth capital for the further expansion of the hotel portfolio and management platform. In the course of this transaction, somnOO's management team is also taking a stake in the company. somnOO holds equity interests in and operates over 60 hotels. The company is currently active in Germany, France and Switzerland. The company always has an equal stake in hotel properties and operations. The new equity capital provided by Crédit Mutuel Equity will be used to convert existing minority shareholdings into majority shareholdings and to make acquisitions. To date, somnOO has focused on individual acquisitions but will now be open to future portfolio acquisitions as well. In the coming years, somnOO aims to become one of the top 5 European hotel owner-operators.
somnOO was founded in 2014 by Lars Backhaus and Christian Rousseau and has since built a diversified hotel portfolio of more than 4,000 rooms in the two, three and four-star categories, catering to both leisure and business travelers. In contrast to funds that invest solely in real estate, pure-play
operating companies or franchisors, somnOO covers the entire value chain from real estate investments to operations and marketing. The company operates its hotels under its own brands as well as under franchise agreements with Best Western, Holiday Inn, Ibis, Kyriad and Novotel, among others.
somnOO invests in two cycles: In the first cycle, somnOO acquires an existing hotel together with partner investors. So far, the focus has been on individual properties in the DACH region and France. In this cycle, somnOO takes a minority stake in the property and the hotel operation and assumes
operational management. In addition, somnOO will receive a call option or preferred rights to buy out co-investors. In the second cycle, somnOO organizes the liquidity of the partner investors and takes over the majority of the shares in the property and operation of the hotel. somnOO's partner investors include various institutional investors and financing partners, including funds, family offices, HNWIs, and banks.
This model ensures that the interests of the partner investors and somnOO are aligned. A strong operating performance lays the foundation both for the liquidity of partner investors and the acquisition of the majority stake by somnOO in the second cycle. Likewise, the interests between the property owner and the operator in terms of rents and investments are aligned, which benefits longterm stability. In addition, real estate ownership ensures resilience and investment security. However, due to the in-house operation, the return is higher than with an investment solely in real estate, and there is no rental risk. As a result, the somnOO platform creates balance both among the partners involved and with regard to the mix of real estate and operational risks.
Using the capital of Crédit Mutuel Equity, somnOO is entering the scaling phase of its model and plans to strengthen its market position, especially in Germany and Switzerland. The investment partnership with Crédit Mutuel Equity also gives somnOO access to Crédit Mutuel Equity's industry experience and pan-European network, as the firm already has a stake in the hotel chains La Boutique Hotels Collection, Oletis, Onomo Hotels and Okko Hotels.
Fabienne Mazières, Managing Director Germany and Switzerland at Crédit Mutuel Equity, said:
"somnOO is a typical investment for us. As an entrepreneurial financial partner, we want to grow with our investments. somnOO is entering a phase of intense and dynamic growth, which we can optimally support with capital, know-how and network. The fact that we only invest equity from the Crédit-Mutuel group allows us maximum flexibility, enabling us to adapt to the pace of somnOO and to the market dynamics. We were also immediately on the same wavelength on a personal and cultural level. This is very important to us, since trust in management is an essential part of our investment philosophy."
Lars Backhaus and Christian Rousseau, founders and CEOs of somnOO, said: "We are very much looking forward to working with Crédit Mutuel Equity as an anchor investor. We were not only convinced by the well-known name and solid background combined with relevant industry experience, but also by the respectful interaction and the cooperative attitude. We share the principle of equality of interests with our co-investors, which is an important cultural factor. Crédit Mutuel Equity's 'patient capital' approach also allows us to develop our business step by step, which is very important to us."
About somnOO
The hotel company somnOO consists of a management platform as well as over 60 hotels in Germany, France and Switzerland. somnOO is a hotel company with a one-of-a-kind value creation process: As well as being the operator of its hotels and restaurants, the company always retains
ownership of real estate and operations. This guarantees long term industry value and resilience and allows to integrate operational value creation in each field of action.. somnOO works in two cycles: First, the company operates its hotels with a minority holding and call option or preferred purchase right. At a later stage, it converts its minority stake into a majority stake while maintaining the operator position. somnOO currently holds 13 majority stakes and 48 minority stakes (as of the end of 2023).
www.somnoo.comAbout Crédit Mutuel Equity
Crédit Mutuel Equity (formerly CIC Capital) is the private equity subsidiary of Crédit Mutuel Alliance Fédérale and carries out venture capital, growth capital and buyout activities.
Crédit Mutuel Equity supports business leaders at all stages of their companies’ development, from seed phase to buyout, by providing them with the means and the time required to implement their transformational projects. Crédit Mutuel Equity brings together a network of over 350 business leaders and entrepreneurs who share similar convictions and can benefit from one another’s experience, no matter the nature of their projects. Using its own funds (€4.0 billion), Crédit Mutuel Equity makes investments tailored to the time horizons and growth strategies of the companies in which it invests, whether in France, Canada, the DACH region or Belgium
www.creditmutuel-equity.euAbout Crédit Mutuel Alliance Fédérale
Crédit Mutuel Alliance Fédérale is one of France's leading bank insurers, with more than 77,000 employees serving over 30 million customers. Its 4,500 branches offer a diversified range of services to a wide range of customers, from private individuals and local professionals to companies of all sizes.
The Crédit Mutuel Alliance Fédérale is made up of of the Crédit Mutuel sub-associations Centre Est Europe (Strasbourg), Sud-Est (Lyon), Ile-de-France (Paris), Savoie-Mont Blanc (Annecy), Midi-Atlantique (Toulouse), Loire-Atlantique and Centre Ouest (Nantes), Centre (Orléans), Normandy (Caen), Dauphiné-Vivarais (Valence), Méditerranéen (Marseille), Anjou (Angers), Massif Central (Clermont-Ferrand), and Antilles-Guyane (Fort-de-France).
Crédit Mutuel Alliance Fédérale also encompasses Caisse Fédérale de Crédit Mutuel, Banque Fédérative du Crédit Mutuel (BFCM) and all its subsidiaries, including CIC, Euro-Information, Assurances du Crédit Mutuel (ACM), Targobank in Germany, Cofidis, Beobank in Belgium, Banque Européenne du Crédit Mutuel (BECM), Banque de Luxembourg, Banque Transatlantique and Homiris.
www.creditmutuelalliancefederale.frPress contact
Charles Barker Corporate Communications
Jan P. Sefrin / Dr. Tobias Anslinger
Tel. +49 (0)69 79 40 90-26/-41
E-Mail: cmequity@charlesbarker.de
