European independent budget hotel chain B&B Hotels and French hotel property specialist Covivio Hotels have agreed to acquire three existing hotels in the Polish cities of Lodz, Warsaw and Krakow for €24 mln as well as to develop new ones across the country.
B&B Hotels, which is 43.2%-owned by Covivio and majority owned by Goldman Sachs, said that the deal will boost its presence in the country where it currently operates seven assets. Under the agreement, the two partners have agreed to develop some 1,500 bedrooms in Poland’s biggest cities.
Having first teamed up in 2010, B&B Hotels and Covivio are investment partners in 157 hotels across France, Spain and Germany.
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 added: '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.'
Covivio Hotels currently owns 400 hotels across 10 European countries for a total value of €5.7 bn.
B&B Hotels Group operates 503 hotels largely in France, Germany, Italy and Spain.