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.
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