Minor International has reached agreement to acquire 30,000,000 shares in NH Hotel Group in a transaction valued at €192 million.

Together with its existing shareholding, the deal will increase Minor’s stake in NH Hotel Group to 8.6 per cent on a fully diluted basis.

NH Hotel Group is the sixth largest hotel chain in Europe and this investment offers important strategic benefits to Minor International which, with its deep hospitality and food and beverage experience, also brings strategic value to the NH Hotel Group.

NH Hotel Group is on a strong growth trajectory as it has successfully enhanced operational efficiencies across its group in recent years and is also now benefitting from the improving European macroeconomic outlook, both of which have been reflected in its strengthening financial results and rising average daily rates.

In particular, its four main clusters, Spain, Benelux, Central Europe and Italy, have been, and will continue to be, the drivers for solid growth going forward.

The investment in NH Hotel Group also marks a strategic progression given Minor’s current presence in Asia, Australia, the Middle East and Europe.

NH Hotel Group has a portfolio of 382 hotels and resorts with 59,350 keys spanning across 30 countries in Europe, the Americas and Africa.

The group was founded since 1978 and today has become one of the top 25 hotel chains in the world with in-depth expertise in the mid- to upscale segments.

The NH and NH Collection brands have gained fast-growing recognition, particularly in Europe, with the strong potential to expand its footprint and enhance its reputation even further globally.

Dillip Rajakarier, chief executive, Minor Hotels, commented: “This investment represents a significant milestone for Minor Hotels.

“We are excited by the opportunity to accelerate our global exposure with our investment in NH Hotel Group, which has a highly complementary business and asset portfolio to Minor International.

“The investment is financially attractive, with high liquidity on the Madrid Stock Exchange and proven performance by the business.

“Over the past few years, NH Hotel Group’s board of directors and management team have re-invigorated the business and delivered strong business performance in line with its five-year strategic plan.

“As a key shareholder in the business, we look forward to supporting the management team as a strategic shareholder to continue this success and build long-term shareholder value for NH Hotel Group and its shareholders including Minor. performance and enhance customer experience.”

No management changes at NH Hotel Group are expected in connection with investment in the company.