Carlyle Group completes €480m European hotel chain buy

Global alternative asset manager The Carlyle Group has completed the acquisition of the B&B Hotel Group, which operates a chain of 223 budget hotels with a total of 16,162 rooms across France, Germany and Italy. The acquisition from European investment firm Eurazeo has an enterprise value of circa €480m. The transaction closed on 28 September 2010. Carlyle said it would expand the company by investing in the continued renovation of current hotels and by accelerating the hotel opening pace across Europe. This will include further penetration of the core French market, significant expansion in Germany (which currently accounts for only 34 properties in the total portfolio) and growth in Italy, as well expanding the chain into new territories including Poland, Portugal, The Netherlands. Franck Falezan, managing director at The Carlyle Group, said: “B&B has high customer satisfaction and has had strong market performances and strong business resilience during the downturn. “We are confident in the continued high growth potential of the company in existing and new European markets. In partnership with our experienced real estate team and B&B’s excellent management team, we look forward to helping B&B reach its full potential.” Equity for the transaction comes from Carlyle Europe Partners III, a €5.4bn buyout fund, and Carlyle Europe Real Estate Partners III, a €2.2bn real estate fund. The transaction follows the real estate team’s recent acquisition of the £671m White Tower portfolio and investment this week in the London student housing market. paul.norman@estatesgazette.com To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.