Covivio lets 31 hotels in France to B&B HOTELS
Switch to fixed-rent leases under the B&B HOTELS brand following the takeover of 31 operating properties
A value-creating asset management achievement
Covivio announces the signing of a memorandum of understanding through its subsidiary Covivio Hotels with B&B HOTELS for the takeover and sale-lease of 31 hotel operating properties located in France after their purchase from AccorInvest. This asset and brand management transaction demonstrates Covivio’s ability to revitalise its hotel portfolio and offer a range of products increasingly aligned with expectations.
New stage in the partnership between Covivio and B&B HOTELS
These 31 hotels (2,565 rooms), already owned by Covivio and operated under Accor Group brands (Ibis, Novotel and Mercure), were previously let to AccorInvest under variable-rent leases. Following the signing of the memorandum, Covivio and B&B HOTELS, partners since 2010, have agreed on new 12-year firm fixed-rent leases. Covivio will accordingly benefit from a substantial increase in rents compared to 2019 and will participate in a works programme conducted by B&B HOTELS. This transaction allows Covivio to provide support to Europe’s third-largest economy class hotel brand in a new phase of its development in France.
As the hotel market recovers, Covivio is setting part of its hotel portfolio in motion by pursuing its dynamic asset and brand management strategy in order to optimise profitability and guarantee a hotel offer increasingly aligned with user expectations.
“We have several levers for supporting the hotel industry’s recovery in 2022: establishing the best operating model for our hotels, continuing to support brands in their development and investing in our hotels to match traveller expectations as closely as possible. This decisive transaction activates all three levers and helps further enhance the value of Covivio’s hotel portfolio, which today spans nearly 350 hotels (worth €6.6 billion) located in the heart of major European cities.” Tugdual Millet, CEO Hotels, Covivio.