Goldman Sachs is in talks to purchase France-based economy hotel chain B&B Hotels from private equity firm PAI Partners for about 2 billion euros ($ 2,2 billion), according to Bloomberg reports.
PAI Partners has acquired the hotel chain in 2016 for €790 million. B&B Hotels is a budget & economy hotel chain in Europe.B&B operates a network of 486 budget hotels, with a total capacity of 42,832 rooms across 12 countries.
According to PAI Partners announcement which confirmed the negotiations for the sale of B&B Hotels, the transaction will be subject to employee consultations and approval of regulatory authorities and it is expected to close in the second half of 2019.
Gaëlle d’Engremont, Partner at PAI Partners, commented: “We are proud to have been part of B&B’s growth journey over the last three years. B&B is an excellent example of an entrepreneurial approach to business, which has helped achieve superior growth and customer service. Today, B&B is a strong European platform that offers consistent high quality in its budget segment and is very well placed to capture further growth.”
European hotel real estate investment volume declined by 0.5 per cent year-on-year in the 12-months to Q1 2019, totalling €23.0 billion for the period, according to the latest research from global real estate advisor CBRE.
Following a record-breaking 2018, a robust start to the year has maintained in the European hotel sector. Hotel investment in France amounted to €1.3 billion through the last 12-months. Whilst this represented a decline of -6.0 per cent year-on-year, it was enough to elevate France to Europe’s fourth largest market.
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