19 May 2017 – Expansión
The hotel chain B&B Hotels and the investment fund Corum have reached an agreement to allow the former to divest the assets that it owns in Spain, whilst continuing to manage them, and the latter to strengthen its presence in the country with the purchase of eight hotels.
According to the terms of the agreement, B&B will sell the establishments to Corum for €30 million, although it will continue to operate them under a lease arrangement for at least 15 years. The hotels included in this operation are located in Figueres, Girona, Granollers, Mollet, Viladecans, Valencia, Albacete and Fuenlabrada.
The two groups also plan to explore new opportunities to collaborate in Spain and Portugal during 2017.
B&B Hotels, owned by the fund PAI Partners, operates 20 hotels in Spain after it purchased the low-cost chain Sidorme last October. The French hotel group, which tripled its turnover in Spain in 2016, to exceed €20 million, wants to double in size in the country within three years and is evaluating its expansion into Portugal.
Meanwhile, the real estate investment fund Corum, which manages more than €1,300 million in assets across Europe, is planning to invest more than €450 million in various European countries, including Spain, in 2017.
Corum made its debut in Spain in 2013 with the purchase of a commercial property in Tarragona. This is the sixth operation that the fund has completed in the country.
For Jairo González, CEO of B&B Hotels in Spain and Portugal, this operation allows the chain to “lighten the load” on its balance sheet in Spain to be able to incorporate more hotels into its network.
Philippe Cervesi, Director of Investment at Corum, said that the agreement reflects Corum’s capacity to find “interesting assets, with a good return and excellent guarantees, in an attractive market such as Spain”.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake