Tag: B&B Hotels

B&B Sells another Hotel in Spain to the fund Corum for €6.6M

22 January 2019 – Expansión

The French hotel chain B&B Hotels – owned by the fund PAI Partners – has sold a hotel in Viladecans (Barcelona) to the French fund Corum for €6.6 million. It is the chain’s largest hotel in Spain, with 216 rooms.

This operation follows the sale of eight hotels that the company completed last year, also to Corum. Like it did then, B&B is going to continue operating the latest asset under a rental arrangement for at least 15 years. Following the sale, B&B owns just two hotels in Spain, in Oviedo and Barcelona (…).

B&B now operates 30 establishments in Spain and plans to continue growing its portfolio in the country during 2019. Its hotels in the country are owned by funds, Socimis and family offices, such as Corum, Atom, Covivo, Doalca and Azata.

Original story: Expansión (by R.A.)

Translation: Carmel Drake

B&B to Open the First Hotel in Valdebebas

29 October 2018 – Expansión

The hotel chain B&B Hotels – owned by the fund PAI Partners – is arriving in Valdebebas with the objective of opening the first hotel in that urban development to the northeast of Madrid in 2021.

To this end, the French chain has signed an agreement with Filasa, the owner of the land on which the establishment will be built, for the rental of the plot in Valdebebas for a minimum period of 10 years.

Two buildings are going to be constructed on the plot, which has a buildable surface area of 8,000 m2. The first, which will span a surface area of 4,400 m2 and be shaped in a stepped-structure, will house the 150-room hotel. The second, which will span 3,200 m2 and take the form of a cube, will be used for offices. This property will also have a premise measuring 400 m2.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

B&B Adds 7 Hotels to its Portfolio in Spain

5 February 2018 – Expansión

Growth / The French group has added seven establishments from the H2 Hoteles chain, two under ownership. Its domestic portfolio now comprises 29 hotels and more than 2,700 rooms. 

B&B Hotels –owned by the private equity fund PAI Partners – is strengthening its commitment to Spain. The French group, which arrived in the country in 2015 with the purchase of four hotels and, one year later, purchased the low-cost chain Sidorme, has incorporated seven new establishments from the Catalan H2 Hoteles chain into its portfolio. Two of the properties have been included as owned assets and the other five are rental arrangements; these hotels contain 600 rooms in total.

With this operation, the company specialising in low-cost hotels now operates 29 establishments in the domestic market, comprising more than 2,700 rooms.

Specifically, B&B Hotels has completed the purchase of the management company and the rental contracts – which have a duration of almost 20 years – and has incorporated the H2 Hoteles establishments’ teams in Castellón, Elche, Getafe, Granada and Jerez de la Frontera, owned by AC Hoteles. Moreover, the French group has taken ownership of another two hotels in Oviedo and Rubí (Barcelona).

Following the purchase, H2 Hoteles will have three hotels left in its portfolio –H2 Sant Cugat (Barcelona), H2 Fuenlabrada (Madrid) and H2 Ávila–, as well as apartments in Cáceres.

The Director General of B&B Hotels Spain and Portugal, Jairo González, explained to Expansión that the company plans to sell the ownership assets in the short term. “We will likely incorporate other hotels to be able to have a portfolio of assets that we can sell all together, continuing with their management and following the company’s asset-light model”, he said.

In the framework of this strategy, in May, B&B Hotels reached an agreement with the investment fund Corum to sell eight hotels that it owned in Spain for €30 million. By virtue of that agreement, B&B will continue to operate those establishments under rental agreements for at least 15 years.

The director said that the H2 Hoteles establishments are “in perfect operating condition”, and will be adapted over the next few months to fit with the company’s corporate image.

“The forecast investment for the seven hotels amounts to almost €1.5 million and will be limited to adapting the establishments to our identity”, he added.

Plans

In terms of growth plans, the executive expressed his intention to continue to increase his firm’s presence in Spain. “We have more than 20 projects under development in different degrees of maturity in the Iberian Peninsula. In Portugal, for example, we expect to announce more news soon. We forecast that we will have more than 50 establishments by the end of 2019”, said González.

B&B’s roadmap in Spain allowed the firm to triple its revenues last year to reach €30 million. Besides Spain, B&B Hotels Group has a presence in France, Germany, Italy, Poland, Morocco, the Czech Republic and Brazil. The company’s plans involve strengthening its world network to reach 600 hotels by 2020, with around 50,000 rooms.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

French Fund Corum AM Acquires Hotel Cartagonova in Cartagena

6 December 2017 – La Verdad

One of the flagship hotels in the Murcian city of Cartagena is changing hands. The French investment fund Corum AM has acquired the 4-star Hotel Cartagonova, located on Calle Marcos Redondo. The property is going to be operated by B&B Hotels on a lease basis for at least fifteen years, according to a statement issued yesterday by the international chain.

The amount paid for the economic operation has not been disclosed. The establishment is going to be renamed B&B Hotel Cartagena and will see 100 rooms of varying sizes go on the market, ranging from individual rooms to suites and family rooms – all of them have been redesigned and modernised in recent years. Moreover, the hotel has a lobby, a meeting room, 31 underground parking spaces and several free services for its guests. According to the buyers, the condition of the facilities is very good, and so they only plan to carry out minimal changes to bring the property in line with the standards of B&B Hotels. The company defines itself as a specialist in “comfortably designed accommodation, offering select high-quality services, at an attractive price”.

The interest from the hotel company in establishing a presence in the tourist city, which is “growing fast” and benefits from a strategic location, has been key to the success of the operation. Its executives have not failed to notice that the port of Cartagena is the country’s fourth busiest in terms of goods traffic. Moreover, the hotel is positioned in a very central location, both for those travelling for pleasure and for business.

“The new B&B Hotel Cartagena has excellent facilities and an unbeatable premium location. It has been designed carefully and will allow us to continue offering our guests high-quality accommodation at an unbeatable price across Europe”, said the chain’s Director of Expansion in Spain, Teresa Pérez.

The company that operates the property formerly known as Hotel Cartagonova owns twenty establishments all over Spain. It closed the first half of this year with a turnover of €13 million. In recent months, it has opened hotels in Madrid’s Puerta del Sol and in the city of Vigo.

Original story: La Verdad (by Gregorio Mármol)

Translation: Carmel Drake

B&B Hotels Spain Revenues in Spain at 13 Million Euros in 1H17

 

22 August 2017

The hotel company has boosted its sales thanks to the acquisition of Sidorme Hotels in October 2016, together with the launch of new hotels such as the B&B Hotel Puerta del Sol in Madrid and the B&B Hotel Vigo.

The hotel group has quintupled it sales with this result

B&B Hotels, the hotel chain which specializes in offering comfortable accommodations with high-quality design and services, has quintupled its revenues in Spain in the first six months of this year compared to the same period in 2016, thanks to the 20 hotels the group operates in Spain.

The acquisition of Sidorme Hotels in October 2016, together with the launch of new hotels such as the B&B Hotel Puerta del Sol in Madrid and the B & B Hotel Vigo, haves boosted the group’s revenues above 13 million euros in the first half of the year.

This increase has had a positive impact on the hotel’s general operating profits, which have improved by 18 percentage points, leading Ebitda for the same period of 2016 to increase by a factor of fifteen, reaching 3.4 million euros in the period.

B&B hotels also obtained a 57% improvement in RevPar, with both occupancy (OCC) increasing by 45%, and the average price (ADR) by 9%.

Operating on a rental basis

In the first half of the year, the chain also sold the eight hotels it owned outright to the French fund Corum Asset Management so that all its hotels are operated on a rental basis.

“This is an excellent start for the first half of 2017, and we intend to improve our results even more by the end of the year. In 2016, the B&B Group registered the highest growth in the budget hotel sector, with a 15% increase, driven largely by the Iberian market, which further strengthened the confidence our shareholders and financial partners. We must take advantage of our good financial health to continue growing both in the Spanish market and in the Portuguese market with the medium-term intention of reaching the 40 hotels between the two countries. To achieve this goal, we will always offer our guests quality accommodations at an unbeatable price throughout Europe,” Jairo González, general manager of Spain and Portugal for B&B Hotels, stated.

B&B Hotels was the fastest growing independent hotel chain in Europe in 2016, reaching around 400 hotels in total, with 33,600 rooms and 6.8 million overnight stays.

The establishments are spread between France (254 hotels), Germany (93), Italy (25) and Spain (20). The company also operates five hotels in Poland, one in Morocco and another in the Czech Republic, and is expected to open units in Switzerland, Belgium, Austria and Brazil in the coming months.

The group intends to increase its network to 600 hotels by 2020, reaching some 50,000 rooms.

Original Story: agenttravel.es

Translation: Richard Turner

B&B Sells 8 Hotels In Spain To Corum For €30M

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

B&B Hotels Plans To Double In Size By 2019

26 January 2017 – Expansión

B&B Hotels is putting its foot down on the accelerator in Spain and wants to double its size in the country over the next three years. The French hotel group, which is owned by the private equity fund PAI Partners, currently operates 20 hotels in Spain following its purchase of the low-cost chain Sidorme last October. It is planning to grow its portfolio to 40 hotels by the end of 2019, according to Jairo González, CEO at B&B Hotels for Spain and Portugal.

“PAI Partners have owned B&B Hotels since March 2016 and they expressed their interest in Sidorme immediately”, said the Director. B&B Hotels has operated four hotels in Spain since 2015 and added 15 assets to its portfolio last year through the purchase of Sidorme. Moreover, in January, the chain incorporated a new hotel in Vigo.

The private equity fund’s commitment to Spain is “clear”. “The idea is to open five hotels this year and to commit to opening another five in the future. Our plan is to open 20 more hotels between now and the end of 2020, which would mean doubling our current operations”, said González.

Moreover, the company wants to make its debut in Portugal. “It is a very interesting market and it is perfect for a product such as ours. We want to open our first hotel in the country during 2017”.

Last year, the company recorded turnover of more than €20 million in Spain and an EBITDA of more than €5 million, which represented a two-fold increase compared to the previous year. “The forecast for this year is to achieve growth of between 20% and 30%. Our size still allows us to do that”, said González.

And he added: “Rapid growth generates a certain degree of chaos, which, if channelled in a productive way, permits a very positive vibrant effect, but, otherwise, is self-destructive”.

The company’s plans also include selling the owned hotels it inherited from Sidorme – eight of the twenty assets in its current portfolio – to focus on the management of its assets. The company manages almost 3,000 rooms with a RevPAR (average revenue per available room) of around €30.

In terms of the tourist apartment business line, the company will analyse any new opportunities that fit with its strategy. “We see this business as an opportunistic option. If we come across operations such as the one on Calle Fuencarral, 46 (in Madrid), we will be delighted to proceed, but we are only interested in buildings that are close to existing hotels so that they can complement the existing products”, added the Director.

Sidorme currently operates apartments on Calle Fuencarral, 46, which are located just a few metres from a Sidorme hotel on the same street.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

B&B Hotels Takes Control Of Hotel Group Sidorme

20 October 2016 – Expansión

The French hotel chain B&B Hotels, controlled by the French private equity firm PAI Partners, has acquired the Spanish group Sidorme, which has 1,367 rooms across 15 establishments in Spain.

With this operation, B&B Hotels now controls 19 establishments in Spain. The French group already owned four hotels in Valencia, Alicante, Madrid and Gerona, and plans to open a fifth, in Vigo, at the end of 2016.

The Sidorme brand will disappear and will be absorbed by B&B, which is more widely recognised and has a strong international presence. B&B Hotels manages and operates almost 370 hotels in France, Germany, Italy, Spain, Poland, Czech Republic and Morocco.

The head of Sidorme until now, Jairo González, who has purchased a minority “but significant” stake in the hotel chain, will be the CEO of B&B in Spain and Portugal.

The Director has explained that the company plans to enter the Portuguese market soon and grow at double digits over the next three years.

The hotel group expects to increase its sales by 49% in 2016, to exceed €15 million. The company, which increased its sales by 45% in 2015, to more than €10 million, tripled its profits during the same period, to generate a net profit of more than €1 million. “The aim is to achieve cumulative EBITDA growth of 30% over the next three years and to double the size of the hotel chain”, said González.

Sidorme was founded in 2014 by fourteen family offices from across Spain, including the New Windows Group, the Del Castillo family, José Manuel Loureda and the Sansalvadó family, who invested around €25 million in total.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake