Sol Meliá has signed an agreement for the acquisition by the Spanish company of 8 hotels in the centre of Paris along with an additional franchised property, giving a total of 500 rooms. This is the Spanish company`s first move into the French capital and has involved an investment of 13,000 million pesetas - 78.13 million euros -.
Sol Meliá has also announced that it will be spending a further 1,500 million pesetas - 9 million euros - in the renovation of the properties to adapt them to the product and service quality standards expected of the Meliá and Meliá Confort brands and the new Boutique Hotel concept.
The Internal Rate of Return Sol Meliá expects from the investment is 8.7%, while the purchase price is equivalent to 11.9 times profits before amortisation and taxes.
According to the Vice Chairman of Sol Meliá, Sebastián Escarrer, “the incorporation of these 9 hotels in France, coinciding with the first anniversary of the creation of the new Sol Meliá after our take-over of MIA and our merger with Inmotel Inversiones, once again confirms our determination and commitment to continue to pursue sustainable, profitable growth in Europe`s major cities”.
He added that, “in the course of this year we have already invested more than 35000 million pesetas - 210.35 million euros - in the purchase of 11 hotels in Europe and Latin America”.
He also adds that, “now we have created this structure in Paris, our next priority will be to focus on increasing our presence in France through the ownership of additional hotels and also through management and franchise agreements, aiming for a total of between 20 and 25 hotels in total.
We expect that some of them will specialise in the meetings, seminars and incentives market to complement our penetration of the business travel market”.