Budget hotel brand B&B Hotels has taken a major step forward in its aspirations to expand across Europe, signing a portfolio agreement to add 30 hotels across Germany.
The properties, in towns and cities across western Germany, were all previously branded and operating under Accor’s Ibis brand. They will be refurbished with energy efficiency upgrades, before being relaunched over the coming months under their new branding.
Partnering with an investor
The opportunity to grab a significant presence in the German market came alongside investor BC Partners Real Estate, which acquired the hotel portfolio after it was put up for sale by AccorInvest, the hotel property owning affiliate of the Accor group. At a stroke, it will add 2,308 rooms to B&B’s growing budget hotel portfolio.
“This major transaction is part of our drive to increase our exposure to the hotel market in Europe,” said Konrad Stoebe, managing director at BC Partners Real Estate. “We are continuing to invest in this sector alongside our industry-leading partners, B&B Hotels and Hova Hospitality. The investment also represents a further attractive addition to our portfolio in Germany, where we continue to identify attractive opportunities across sectors.”
Also part of the transaction was asset manager Hova Hospitality. Hova already has a relationship with B&B, and following the deal will manage 120 B&B hotels. B&B will lease the newly upgraded hotels from BC Partners, signing long term lease agreements. Rents under the agreement will be inflation-linked, rising over time in line with the consumer price index.
Arno Schwalie, CEO central & northern Europe at B&B Hotels commented: “The new locations will enable us to expand our position as a leading provider in the value-for-money segment. Our focus is on ensuring long-term success through targeted modernization and sustainable investments and offering our guests the best value.“
Continued growth
B&B continues on a strong growth path, and today has more than 800 hotels across Europe. Substantially backed by investment from Goldman Sachs, the group has set growth targets of 400 hotels across Germany and Austria, and 3,000 hotels globally by 2030. It uses a flexible approach to acquiring new properties, including new builds but often featuring conversions from other brands.
In 2023, the company looked to open its first hotels in the USA, and as of mid 2024 has two properties operating, in Miami and Orlando. While in February 2024, B&B signed its first UK property, a hotel that was formerly a Holiday Inn, near Heathrow airport. This was followed in July by a transaction that will see B&B convert five more UK regional hotels to its format, in central Birmingham, Derby, Inverness, Ipswich and Warrington. Mid 2024 also saw B&B opening new Spanish hotels in Castro Urdiales and O Milladoiro, taking its portfolio there to 49 hotels, with a further 15 across Portugal.
