• Transaction / Assets
  • Seller
  • Buyer
  • € MM

NH Sells Sotogrande to Cerberus & Orion For €225 Mn Total

20/10/2014 – Cinco Dias

The NH hotel group has come to an agreement with funds managed by private equity firms Cerberus and Orion on sale of a 96.997% stake in Sotogrande, an urban complex located in Cadiz, for €225 million in total.

According to a note provided by NH to the Spanish Stock Market Commission, the deal excludes assets owned by Sotogrande in Mexico, the Dominican Republic and Italy.

However, it does include land destined for real estate development, two golf courses, sports and tourist facilities, as well as two four-star hotels which will remain under management of NH for the next two years.

The buyers shall now submit a takeover bid for the remaining 3.003% share of Sotogrande.

The transaction will mean a €178 million net income for NH. The hotel chain will intend the proceeds for investment in stakeholding attractiveness, for example in amortizing a part of its debt, reaching an amount of €724,8 million at the end of first half of the year. Aside, the company is going to invest €250 million in refurbishement of more than 100 establishments and tighten business relationship with Chinese group HNA.

For a while, NH has undertaken a strategy of non-core asset divestment. Since 2009, the hotel chain sold 14 establishments in Europe and Mexico for the total of €683 million. By the end of 2018, the group foresees earning €200 million (ebitda) and further expansion.

Although the operation was at the brink of being closed in July, the hotel group was until now waiting for permits necessary for the Marina (port) situated inside the complex.


Original article: Cinco Días

Translation: AURA REE