One of the most coveted wine tourism hotel venues in France has sold through Vineyards-Bordeaux sister company Maxwell-Baynes to American investors. The sellers, the Cummings family, earned both respect and adulation in the 1990’s for their stunning conversion of Amberly Castle (in the UK) as one of the early success stories in the country house hotel sector. The sale of Amberly Castle over 20 years ago led to the Cummings’ purchase of the Abbaye de la Bussière located between Dijon and Beaune in the Cote d’Or wine region of Burgundy, where, out of 33 vineyards in Burgundy that are considered Grand Cru – 32 are in the Cote d’Or and attract the most visitors.
At the time the Cummings’ purchased, the Abbaye was owned by the Diocese of Dijon and was used primarily by the Bishop of Dijon who warmed to the Cummings family and their vision to transform the ancient Abbaye from a religious retreat into a public space for use as a luxury country house hotel. Despite some early resistance from local groups such as the “friends of the Abbaye” – once the hotel opened it was universally loved and became a point of pride for the region.
A combination of estate planning issues and a private family’s capital limitations to expand, led the Cummings to bring the hotel very discreetly to the market and, notwithstanding the ravages of Covid-19 on the hospitality sector, three highly qualified buyers were attracted to the opportunity once the Covid restrictions were lifted.
In Napa Valley, vineyard tourism is not a new phenomenon with some of the highest concentrations and highest occupancy rates of luxury hotel rooms in the world. The trend has been slower to take hold in Bordeaux and Burgundy, not least due to the considerable barriers to entry created by the presence of the vineyards themselves. In prime areas of Burgundy and Bordeaux vineyards prices per hectare can reach many millions which together with the heavy planning restrictions has combined to limit the number of hotel rooms available. At the time we launched the discrete marketing of the Abbaye in 2018, the best statistic to give context to vineyard locations is that there were 111 four or five star bedrooms (“keys”) outside Dijon within 35 minutes’ drive of the famed Domaine Romanée Conti which means (at 20 keys) the Abbaye controlled 18%. The buyers of the Abbaye calculated that even a relatively modest expansion project could take that to 25% of the luxury market in a region that has been earmarked for serious regional wine tourism growth as evidenced by the investment in the city of Gastronmie. Speaking of gastronomy, the restaurant at the Abbaye is one of 26 restaurants in Burgundy with a one Michelin star rating. There are in addition 3 restaurants with 2 stars and one with 3 stars.
The future of the Abbaye de la Bussière is bright with considerable investment in tourism infrastructure from regional government set to underwrite wine tourism in the Burgundy vineyard regions. The new owners plan to increase the number of keys to around 35 together and add a swimming pool and some treatment rooms located in the Mill House area to the south of the campus – notwithstanding this investment the Abbaye will remain unchanged from the original Cummings vision 20 years ago as one of the best wine tourism venues in the world.
In our previous article we noted that wine tourism statistics are rapidly improving as a class unto itself. For those that take wine tourism seriously we believe this is the future for Bordeaux which is four times the size of Burgundy and blessed with a large number of grand chateau buildings. But whether investment comes in small scale or larger projects, we forecast that over the next 20 years Bordeaux and Burgundy vineyard regions will catch up with and potentially surpass the vineyard tourism reference point today of the Napa Valley.
Like a vineyard transaction, a hotel transaction is not a real estate purchase and sale, but a company share sale and as such it has more in common with an M&A project than a typical real estate asset sale. We were deeply touched by the positive testimonies (below) that we received post sale, and we are proud to place them amongst the ever-growing collection of testimonies underwriting the excellence we provide our clients.
From the Buyer of the Abbaye de la Bussière
Michael Baynes is the best broker I have worked with in my 25 years in the real estate business. His background as an owner and developer gives him a unique insight into the needs of his clients before, during, and after the transaction. His integrity and strategic approach to all facets of the acquisition process truly set him apart.
Atelier 13: Owner, Abbaye de la Bussière
From the Seller of the Abbaye de la Bussière
Good morning Michael,
Joy & Martin Cummings
The dust has now settled sufficiently on the sale of our hotel, Abbaye de la Bussière on 30th. September 2022, for me to place in writing the thoughts of Joy and I on the process.
Without doubt this has been a four year battle with many ups and downs by way of finding the appropriate buyer. Throughout this period we have been amazed at your interest, enthusiasm and patience. Many an agent would have given up long ago! You were determined to make a sale! Dijon being the other side of France from your base in Bordeaux meant many stays here with various interested parties but despite this you never gave in and your confidence did much carry Joy and I with you.
The eventual buyer, known to both of us, turned out to be a real gem. Although the price was an issue, you handled that to the benefit of both buyer and seller and left us both in a position to do the deal.
The complications of moving dollars to France from the USA, setting up a bank account in euros for the purchaser and the eventual movement of funds to England went off like clockwork. You should be most proud of your contribution and with my accountant in France, Jean Claude Decombard, you made up a super team that at no stage allowed the difficulties to get on top of the situation.
We wish to sincerely thank you for holding our hands and guiding us throughout.
We don’t have any more hotels to sell (I hear relief!!) but hope that our paths cross at some time in the future, in the meantime our very best wishes!