Eurazeo has completed the sale of its FST Hotels stake to Extendam, a European hospitality-focused private equity firm. The transaction involves three hotels across Madrid and Barcelona encompassing 543 rooms, marking the conclusion of Eurazeo's Real Estate strategy investment that began in 2022.

The French investment firm originally acquired FST Hotels through a joint venture with a major institutional investor, taking control of five Ayre-branded hotels totaling 800 rooms. Over the subsequent four-year period, the partnership pursued an active value-creation strategy, systematically reducing the portfolio through selective asset disposals while repositioning the remaining properties.

This exit reflects Eurazeo's approach to hospitality investments, where the firm combined strategic asset sales with operational improvements to maximize returns. The reduction from 800 rooms across five properties to 543 rooms across three suggests a focused divestment strategy rather than a broad liquidation.

For Extendam, acquiring these Spanish assets strengthens its hospitality footprint in key European markets. The deal demonstrates continued private equity interest in European hotel real estate despite ongoing sector challenges, with specialists like Extendam viewing selective opportunities in established urban markets.