- A deal that will double B&B Hotels’ capacity in PolandA venture testifying to the dynamic business model of B&B Hotels, which posted 2018 revenues up 18.2% driven by surging European growthA further transaction that bears out the two companies’ solid alliance and Covivio’s skill to support and fuel growth of European hotel chains
No.1 European independent budget hotel chain B&B Hotels and Covivio Hotels, in which Covivio holds a 43.2% stake, have signed an agreement whereby Covivio will buy three existing hotels for €24m in Lodz, Warsaw and Krakow and develop other hotels. The transaction will double B&B Hotels’ capacity in Poland.
This deal will give B&B Hotels a platform to ramp up growth in the country by building new hotels amounting to some 1,500 bedrooms in Poland’s biggest cities. The transaction involves B&B Hotels acquiring its new Polish hotels under long-term leases.
Having first teamed up in 2010, B&B Hotels and Covivio now work together on major hotel ventures in France, Spain and Germany, where they own and operate 157 hotels totalling 13,715 bedrooms.
B&B Hotels CEO Fabrice Collet said: “This latest deal will further bolster our partnership with Covivio while once again testifying to our brand appeal. We have considerable growth potential, particularly in central Europe.”
Covivio Deputy CEO Dominique Ozanne exclaimed: “With this agreement, we continue our partnership with B&B Hotels who we’ve helped to grow across Europe ever since 2010. Meanwhile, this deal, initiated with the completed €24m purchase of three hotels in Lodz, Warsaw and Krakow, signal our arrival on the Polish hotel market, which is very buoyant and has excellent growth prospects.”
Poland, the no. 1 European budget hotel chain’s latest target market
B&B Hotels currently has 7 hotels in Poland and plans to step up the pace of expansion over the next five years striving to double its bedrooms in the country.
In 2018, the Company ramped up growth across Europe seizing top spot on the German and Italian markets, further expanding in France and Spain, and moving into five new countries – Portugal, Belgium, Switzerland, Austria and Slovenia. This latest transaction gives Covivio a hotel real estate presence in the biggest metropolitan areas of ten European countries. Backed by 400 owned hotels, Covivio’s hotel assets are worth €5.7bn.