B&B Hotels Sells the Last of it’s Real Estate Assets in Spain and Portugal
Main Photo: The B&B Hotel at Lisbon Airport
Date: April 2021
Location: Spain & Portugal
Name: B&B Hotels
No. of Keys: 42 hotels – Keys TBA…this sale – 188
Seller: B&B Hotels….aka Goldman Sachs, who acquired the entire B&B Hotels chain in 2019
Buyer: B&B Hotels has concluded the sale and guaranteed long-term rental of its latest hotel in Portugal, the B&B Hotel Lisboa Aeropuerto, to MNK Partners, for €14m. The group is thus abandoning all its real estate assets in Portugal and Spain. The objective is to consolidate its “Asset Light” management model to maintain high growth rates in this area.
The B&B Hotel Lisboa Aeropuerto is a three-star hotel with 188 double and family rooms, located next to Lisbon International Airport. This hotel had been financed and built by B&B Hotels with the aim of simultaneously selling and renting it to a real estate fund via a guaranteed long-term rental contract.
Abiud de Santiago, CFO of B&B Hotels in Spain and Portugal explains the group’s strategy as follows: “The successful sale and rental operation of B&B Hotel Lisboa Aeropuerto provides the B&B group with the necessary financial strength to undertake its ambitious development plan, as well as the consolidation of the Asset Light operating model. ”
B&B Hotels currently has 37 hotels open in Spain and five in Portugal. They are now all managed on long-term rental. Lucía Méndez-Bonito, CEO of B&B Hotels in Spain and Portugal also specifies: “Our strategy for 2021 is to continue to expand our hotel network under a guaranteed long-term rental regime and, consequently, to extend our innovative business model.
We currently have a large number of projects underway, and we continue to look for opportunities to continue our sustained growth in Portugal, a key market for our expansion, with the aim of continuing to be the undisputed leader in the budget hotel industry”.
THPT Comment: Not the first…and not the last to adopt the asset-lite strategy.
First Seen: Hospitality-on
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