BPI France injects €500,000 into France Hostels

The seed capital will finance France Hostels' first expansion steps, with plans to establish eight hostels across French tourism hotspots by 2020. The scheme, meant to push turnover up to €15m by that year, will kick off with the opening of two facilities in a city and a winter sports station in 2017.

France Hostels expects present trends in the French hostel market to fuel its growth plans. According to the SME, the segment is failing to rise up to the mounting demand among young holiday-goers visiting the country.

Having secured a minority holding in France Hostels, BPI France intends to follow up with subsequent injections and bring in co-investors as the business evolves.

The deal is the first to be financed via France Investissement Tourisme, BPI France's recently created €100m tourism-dedicated fund. The vehicle, building on the firm's existing tourism and leisure activity, will provide €500,000-5m cheques to France-headquartered SMEs operating in the sector.

Company
Founded in October 2015, France Hostels is a hostels operator aiming to build a network of establishments across the country's most touristic cities. The Paris-headquartered business offers overnight stays starting at €19 for young travellers.

People
BPI France's work on the deal was led by director Sergue Mesguich and project manager Jessica Barbé, who hold responsibilities in the France Investissement Tourisme fund. Romain Viennois founded France Hostels.

Advisers
Equity – PDGB Avocats, Madia Iliopoulou (Legal).
Company – Chabrerie Baert et Associés, Christophe Baert (Legal).

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• Topics
• France
• Early-stage
• Consumer
• France
• BPI France
• seed