Goldman Sachs Nears €2bn Purchase of Economy Hotel Chain B&B

Main Photo: The B&B Valdebebas, Spain

Location: France-based, across 11 countries in Europe

Name: B&B

No. of Keys: 479 hotels (270 in France) – 42,000 Keys

Seller: Paris-based PAI Partners…At nearly €2bn, private equity firm PAI would make a return of three times its initial investment. PAI bought the French hotelier in 2016 in a deal that valued B&B at €790m.

Buyer: Goldman Sachs, becoming more active as a principle real estate investor in Europe, is nearing a €2bn purchase of France-based economy hotel chain B&B, founded and still headquartered in Brittany.

Although representatives of PAI and Goldman declined to comment, the Financial Times said both firms on Monday confirmed the report in a deal which encompasses 479 budget hotels across Europe, plus in Brazil and Morocco. B&B was founded in France in 1990. Goldman told the FT it plans to accelerate B&B’s international expansion.

Goldman Sachs is doing the deal through its merchant banking division.

B&B Hotels was started in 1990, opened up Germany in 1998, opened 57 Villages Hotel aimed at the family market since 2007

Price: €1.9bn

Price per Hotel: €3,966,597 –  or €45,238 per key (makes more sense!)

THPT Comment:  We’re guessing the hotels are owned, rather than franchised, although there is a franchise model on their website…

First Seen: Business Immo 

and the London FT

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