Covivio, through its subsidiary Covivio Hotels, has signed a memorandum of understanding(MoU) with B&B HOTELS for the takeover and sale-lease of 31 hotel operating properties located in France after their purchase from AccorInvest.
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,” the company said in a press release.
“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.