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Eurazeo sells stake in B&B Hotels

European investment stalwart Eurazeo has confirmed the sale of its stake in B&B Hotels Group to Carlyle Group.

The chain – which has nearly doubled its network from 117 hotels in 2005 to 223 hotels today – changed hands in a deal worth approximately €480 million.

Luis Marini-Portugal, chairman of the supervisory board of B&B Hotels, said: “We are proud of the success of B&B Hotels.

“B&B’s robust growth within our group showcases Eurazeo’s key strengths: identifying French companies with high potential, and guiding and financing their long term development.”

With almost 13,200 rooms and 183 hotels, B&B Hotels is now the third-largest budget hotel group in France after Accor and Louvre Hôtels.


European Expansion

In Germany, it is the second largest budget hotel chain with 35 hotels, compared with eight in 2005. B&B Hotels has also expanded its international operations into Italy, Poland, Portugal and Hungary in recent years.

Group revenues totalled €178 million in 2009 versus €82 million in 2005 – when Eurazeo first took its stake - and have continued to grow at a rate of 18 per cent in the first half of 2010.

EBITDAR rose from €31.6 million in 2005 to €71.2 million in 2009.

This strong growth was underpinned by very significant investment in the renovation of existing hotels, in the purchase or construction of new hotels, and in the development of B&B’s brand, Eurazeo said in a statement.

Eurazeo maintains a portfolio of almost €4 billion in assets, with major shareholdings in companies including Accor and wholesaler Rexel.