Three Hills Capital Partners Has Sought Hotel Stake Exit
The investment firm has initiated the process to offload its minority interest in Castellet Hospitality.
Updated on Sept. 23, 2026 in Hotels
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Three Hills Capital Partners has moved to exit its minority shareholding in the hospitality management firm Castellet Hospitality. To facilitate the transition and potential refinancing, the company has appointed Edmond de Rothschild Corporate Finance to identify a new investment partner.
Why it matters
The firm intends to realize the value of its four-year investment, signaling a strategic shift for the hospitality operator. Castellet Hospitality continues to pursue expansion goals, specifically targeting growth throughout Southern Europe.
Three Hills Capital Partners invested €61.5 million in 2022, followed by an additional €30 million in funding. Castellet Hospitality currently manages more than 30 hotels, exceeding the 25-hotel portfolio threshold.
The players
Castellet Hospitality
This hospitality firm manages a portfolio of more than 30 hotels and was founded in 2017.
Three Hills Capital Partners
This investment firm provides capital to mid-market companies and is currently seeking to exit its minority position.
Gilles Larrivé
He is the founder who established Castellet Hospitality in 2017.
Edmond de Rothschild Corporate Finance
This financial institution has been appointed to manage the exit process and identify a new partner.
The details
Founded by Gilles Larrivé in 2017, Castellet Hospitality has seen significant turnover in its minority ownership structure, including the exit of EMZ Partners in October 2022. The firm is now seeking to stabilize its capital base as it looks to increase its footprint in Southern European markets.
Timeline
Gilles Larrivé launched Castellet Hospitality in 2017.
Three Hills Capital Partners acquired a stake in the company in 2022.
EMZ Partners sold its minority stake in October 2022.
Travel Outlook
This divestment aligns with the private equity hospitality consolidation cycle, where firms cycle out of hotel assets after initial growth phases. Such transitions are common as management firms seek new capital partners to fund expansion into regional markets like Southern Europe.
For travelers and partners, this transition indicates that the hotel group is actively courting new capital to fund future operational growth. While the ownership change is primarily financial, travelers may notice subsequent rebranding or facility upgrades as the new partnership progresses.
The takeaway
The move underscores the high-velocity nature of capital investment in the European hospitality sector. Investors and industry stakeholders should monitor the firm's next funding round to gauge the speed of its projected Southern European expansion.
Further reading
For more on industry shifts, visit the Hotels section.
Source note: This article includes information reported by Hospitality ON.
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