Adenia Partners has exited its investment in Hôtel du Louvre, a flagship business hotel located in Antananarivo, Madagascar, to a group of local investors.

Tojo Rakotozafy, Investment Associate at Adenia Partners, said that during the life of this investment, Adenia Partners transformed the formerly 2-star hotel into a 4-star hotel.

“Total investment cost was €7m including transaction cost and development cost. At time of acquisition, the hotel was a 2-star hotel with 60 rooms. We closely worked with the management to upgrade the building and extended the accommodation capacity up to 78 rooms,” he told Africa Global Funds.

Rakotozafy said that the long-lasting political crisis (2009 to 2013) had a substantial impact on the hospitality industry.

“Occupancy rates sharply declined and competition on prices became stiff. In that fierce environment, with its differentiated offer, Le Louvre was able to maintain a better-than-market room rate, especially in the 3 to 4-star hotel category,” he added.

The original investment was structured through the firm's first fund, Adenia Capital I.

“With this final exit, Adenia Partners is now in the process of winding up the Fund I. Since the launch of Adenia in 2002, so far, we have not experienced any company failure,” said Rakotozafy.

Adenia Partners is a private equity management firm investing in Sub-Saharan Africa since 2002.

The company has maintained the same strategy since its foundation, focusing on control buy-out and growth capital investments in attractive mid-sized businesses exhibiting strong potential for operational improvement.

Adenia has a differentiated approach to asset selection, hands-on engagement, and exit strategy, which has led to substantial value creation and numerous liquidity events.

The firm manages $200m of assets and is currently finalizing the deployment of its third fund, Adenia Capital III.