The Hotel Majestic Rome Case: Between announcements and financial reality

31/01/2026 - 27/02/2029

A critical reading of the Boscalt – Invel – Baccarat transaction

 

The acquisition of the Hotel Majestic in Rome by Boscalt Hospitality (a fund linked to Edmond de Rothschild Private Equity) in 2022 was presented as a strategic move aimed at creating a new benchmark for luxury hospitality on Via Veneto.
Three years later, the entry of Invel Real Estate with a €111.2 million financing facility substantially changes the interpretation of the transaction, transforming it from a straightforward redevelopment project into a complex financial structure, typical of private equity investments in trophy assets.

 

This evolution calls for a deeper reflection on the project’s industrial, financial, and timing sustainability.

---

 

The 2022 acquisition: a clear but incomplete thesis

 

 

When Boscalt Hospitality acquired the Hotel Majestic in June 2022, the stated strategy was consistent with the fund’s positioning:

 

• acquisition of an iconic asset

• reduction in the number of rooms (from approximately 100 to 83)

• repositioning in the ultra-luxury segment

 

The declared objective was to enhance the property through a major refurbishment and the entry of a top-tier international operator. However, at the time of acquisition, the OpCo perimeter had not yet been clearly defined, leaving a critical variable unresolved in terms of the project’s bankability.

 

In other words, the real estate thesis was clear; the industrial thesis was less structured.

---

 

2025: Invel financing and the redefinition of the transaction

 

In February 2025, a true turning point emerged: Invel Real Estate provided €111.2 million in financing to support the transformation of the Majestic into the Baccarat Hotel Rome, managed by SH Hotels & Resorts.

 

This step fundamentally reshapes the profile of the transaction:

 

• the hotel is redesigned to include 87 rooms and suites

• an ultra-luxury brand with strong intangible value enters the project

• a clear PropCo / OpCo separation is established

 

Considering the total amount of capital invested (equity plus debt), the implied post-renovation cost exceeds €1.2–1.3 million per room, placing the project in the extreme luxury segment—rarely sustainable without an iconic brand and highly performing management.

---

 

Why was additional financing required?

 

The need for financing of this magnitude three years after the acquisition suggests that the original structure was not fully sustainable, or at least incomplete. Several factors may have contributed:

 

• Capex significantly higher than initial estimates, partly due to historical, regulatory, and architectural constraints

• the initial absence of an ultra-luxury operator capable of supporting ADR levels and positioning consistent with the scale of investment

• a realignment of the private equity strategy, with a reassessment of the risk/return profile

 

The entry of Baccarat Hotels & Resorts therefore appears less as a delayed branding choice and more as a necessary condition to make the asset bankable and value-accretive.

---

 

Renovation or a new transaction?

 

At this stage, it is legitimate to ask whether this is still the same transaction announced in 2022.
From an advisory perspective, the answer is clear: no.

 

The Majestic project has evolved into:

 

• a new financial structure

• a new industrial perimeter

• a new value-creation thesis

 

This does not represent a failure, but rather illustrates the reality of high-end hospitality transactions, where the gap between announcement and execution is often significant.

---

 

Announcements, execution, and the reality of hotel private equity

 

The Majestic case demonstrates that:

 

• acquiring an iconic asset does not automatically create value

• extreme luxury requires brand, capital, and governance

• hotel M&A transactions are dynamic and non-linear

 

The Baccarat Hotel Rome, scheduled to open in 2026, may indeed become a new symbol of Roman luxury. However, the path leading to it highlights a frequently underestimated truth: value creation in hospitality relies on complex financial architectures and ongoing strategic adjustments.

---

 

A lesson for the Italian market

 

The Majestic case is not an anomaly, but rather a living handbook of hotel private equity. It shows that without:

 

• a clear PropCo / OpCo separation

• a brand consistent with the level of investment

• specialized advisory support

• patient and well-structured capital

 

even the most prestigious assets risk remaining trapped in a prolonged transition phase.

---

 

Hotel Management Group supports investors, funds, and entrepreneurs in complex hospitality transactions, including:

 

• hotel M&A

• PropCo / OpCo financial structuring

• repositioning of trophy assets

• strategic advisory for high-complexity hospitality investments

 

Because in luxury hospitality, buying well is not enough—structuring properly is what truly creates value.

 

https://www.hotelmanagementgroup.it

 

Maggiori informazioni, sulle nostre attività consulenziali sono disponibili sul sito www.neccihotels.it , relativamente alla finanza di impresa ed all'assistenza in situazioni speciali www.investhotel.it