French Chain B&B Opens 4 Hotels In Spain
8 July 2016 – Expansión
The French hotel chain B&B, one of the largest in Europe with a network of 321 establishments and annual revenues of €344 million, has started to expand its business into Spain. A few months ago, it opened its first four hotels here, all of which used to be owned by the Holiday Inn, in Valencia, Madrid, Alicante and Gerona, for a total investment of €14 million. It plans to open at least four hotels a year between now and 2020, with an average investment of around €5 million per property, which represents a total investment of approximately €80 million over the period.
The next hotel opening will be in Vigo, planned for December. B&B, which was acquired by PAI Partners in December, is establishing itself under two systems: the construction of buildings and the acquisition of existing hotels. The four Spanish hotels, which used to house Holiday Inns, were acquired and then transferred to the firm Foncier des Murs, owned by the Crédit Agricole group, which is the company’s financial partner for these types of investments and which itself owns 250 hotels that B&B operates.
The hotel in Vigo will follow the same pattern; meanwhile the company is looking for other opportunities to buy and construct hotels. The Director of B&B in Spain, Dennis Darrien, explained that the company has plans to construct one hotel in Barcelona, in the 22@ district, but that those plans are on hold due to the hotel moratorium established by the Town Hall.
The company is looking for hotels with between 80 and 150 rooms, in good locations.
B&B was created in 1990, as a chain for business travellers in France – where it now has 250 hotels, some of which it owns and others which it leases – with low cost prices. The CEO of the Group, George Sampeur, explained that in Spain they will also target the tourist market, given the nature of the country.
The company has eighty hotels in Germany, twenty-three in Italy, three in Poland, one in the Czech Republic and another in Morocco. It plans to expand to Latin America by opening its first hotel in Brazil, in Sao Paulo, before continuing to Curitiba and other areas in the south of the country.
In total, according to its business plan, B&B plans to open thirty hotels a year between now and 2020.
Original story: Expansión (by J. Brines)
Translation: Carmel Drake