Three Hills backed La Bottega acquires Palatino Hospitality

• Third significant acquisition for La Bottega following the acquisitions of Vanity Group and Beltrami earlier this year
• Confirms La Bottega’s position as strategic consolidator in the growing luxury hospitality market 
• Three Hills invested c. €115 million in La Bottega in May 2024 to support its international expansion

Three Hills is pleased to announce the successful closing of the acquisition of Palatino Hospitality by La Bottega Group (“La Bottega”), its portfolio company in Three Hills Capital Solutions IV (“THCS IV”). The transaction marks the third significant M&A initiative for La Bottega this year, following the previous acquisitions of Vanity Group and Beltrami.

Supported by Three Hills, this collaboration is a vital part of an ambitious “buy and build” strategy for La Bottega, aimed at creating a unique standard in the luxury hospitality industry by consolidating market leadership and enhancing service offerings.

La Bottega, a global leader in luxury hotel amenities, and Palatino, an expert in luxury hospitality Operating Supplies and Equipment (“OS&E”) and design consulting, will combine their strengths to provide an integrated, comprehensive solution for high-end hotels worldwide. By uniting their capabilities, La Bottega will streamline offerings in design, consulting, and luxury OS&E, catering to clients such as Four Seasons, Mandarin Oriental, and Bulgari Hotels & Resorts. This partnership sets out to establish a single, trusted point of reference for luxury hospitality, meeting the evolving demands of the global market.

The new partnership follows La Bottega’s recent acquisition of Vanity Group, a leader in premium hotel services, and its investment in Beltrami, an Italian textile company known for luxury linens. These moves, backed by Three Hills, position La Bottega as a strategic consolidator in a fragmented luxury hospitality market with significant tailwinds for growth.

Three Hills invested c. €115 million in La Bottega in May 2024 through a combination of preferred capital and equity. The investment supports the entrepreneur Tommaso Pacini and wider management team in executing their targeted international expansion strategy via M&A and organic growth. The investment plays to Three Hills’ existing expertise in the hospitality space, with investments including SA Hospitality Group (with flagship brand Sant Ambroeus) and The Wilde, a next-generation members’ club.

Tommaso Pacini, CEO of La Bottega, stated,

“This marks our third major acquisition within a year, further solidifying our position as a leader in luxury hotel services. Our partnership with Palatino enhances our ability to offer a one-stop solution for hotellerie, providing the highest standard of service and innovation.”

Mauro Moretti, Founder and Managing Partner at Three Hills, added,

“Tommaso and his team have set clear ambitions for La Bottega to become the amenities supplier of reference in luxury hospitality. Their latest acquisition of Palatino adds both breadth and depth to an already superlative offering. We at Three Hills remain committed to supporting La Bottega in their exciting plans for growth.”

Three Hills Capital Solutions IV (“THCS IV”) closed at over €1bn in 2022. The fund offers flexible financing solutions and value-add expertise to entrepreneur-led businesses, helping them achieve their next phase of growth. Other recent investments from THCS IV include TwentyFour Seven Group (leading audiovisual production services company based in Spain), LCap Group (specialist leadership advisory and analytics firm in the UK), Kernel Group (multi-brand specialist recruitment platform with global operations) and Digital360 (leading Italian provider of digital marketing and digital transformation advisory services).

About La Bottega

La Bottega, a leading provider of luxury hotel toiletries and amenities for the hospitality market, boasts over 40 years of expertise in the industry. With a global presence, the company operates through 13 regional head offices strategically located in key cities worldwide: New York, London, Barcelona, Paris, Trecastelli, Dubai, Singapore, Hong Kong, Shanghai, and Tokyo. La Bottega services approximately 10,000 hotels across the globe, including top international chains such as Four Seasons Hotels, Mandarin Oriental, The Peninsula Hotels, The Ritz-Carlton, W Hotels, Rocco Forte Hotels, Aman Hotels, as well as some of the most iconic independent properties, including Passalacqua Hotel Moltrasio, The St. Regis Roma, Grand Hotel et de Milan, Faena Hotel Miami, and The Plaza New York.

La Bottega is renowned for its commitment to Italian philosophy and prestigious partnerships with internationally acclaimed perfumery, fashion, skincare, and haircare brands. Esteemed collaborators include luxury names such as Santa Maria Novella, Diptyque, Susanne Kaufmann, Natura Bissé, Grown Alchemist, DS&Durga, and Malin+Goetz.

For more information, visit www.labottega.com