Budget hotel brand B&B has signalled its intent to build the brand in the UK market, acquiring five hotels for immediate conversion. The hotels, in Birmingham City Centre, Ipswich, Inverness, Warrington and Derby, have been taken over and switched to B&B, with rolling refurbishments planned over the coming months as the properties rebrand while still welcoming guests.
It was in late 2022 that the group, which has a major presence in France and across European markets, announced its intention to launch in the UK. A first property was signed in February 2024, with B&B agreeing to rent a hotel near London’s Heathrow airport, from hotel group Arora.
Global ambitions
“This latest takeover of five hotels is an important step in our UK expansion plans – and our global ambition to have 3,000 hotels within 10 years,” said Fabrice Collet, president and CEO of B&B Hotels. “Our successful growth model and commitment to value for our guests have made us a beloved brand across Europe, and we’re excited to bring that same experience to guests in the UK.”
In the UK, B&B has set itself a target of growing to 100 hotels by 2035. It says it will look to grow by partnering with hotel owners, developers, funds and broader property owners, pursuing a range of ways to create and take on hotels around the country.
Currently B&B has close to 800 hotels in 17 country markets, and has grown fast by adopting a flexible attitude towards property acquisition, while delivering a solid value for money proposition for guests.
B&B has also recently taken its first steps into the US market. The group opened its first US hotel in Orlando, Florida in February 2024, rebranding a 218 room property near Universal Studios. The group’s initial growth is happening in partnership with local real estate specialist Batipart. “We are eager to replicate our success in Europe and become a leading player in the US market, with plans for expansion in Miami and Jacksonville,” said Valerio Duchini, the US CEO of B&B Hotels. In July, the company completed a second US hotel deal, adding a hotel in Jacksonville, Florida. The property will relaunch in early 2025, following a comprehensive renovation of its 156 rooms.
A succession of owners
The group has thrived in private equity ownership. It was previously in the hands of PAI Partners, which in three years of ownership grew the company by an average of more than 16% a year, taking it to close to 500 hotels, and adding a presence in several new country markets. In 2019, the company was sold to current owner Goldman Sachs, and as of mid 2024, the company was reported to be once more up for sale, having grown considerably again.
In mainland Europe, and notably Germany, the group continues to expand by signing new build properties. The pipeline includes openings later in 2024 in Eschweiler and Offenburg. Hotels in Polten, Wertheim, Wurzburg and Zwickau are all due to follow in 2025.
