Massive goals: B&B Hotels aims to scale up 3,000 properties by 2030 [Construction Report]
B&B Hotels has big plans for the future.
Goldman Sachs’ budget hotel brand is planning to expand well beyond its current portfolio of 518 hotels.
B&B Hotels, Europe’s third-largest budget hotel chain, is planning on scaling up its current portfolio of 518 hotels to a staggering 3,000 properties by 2030.
We take a look inside the growth strategy of this ambitious brand.
French chain looks beyond Europe
The affordable French hotel brand B&B Hotels, owned by Goldman Sachs following their purchase of the brand last year for €2 billion, is looking to scale up its operations and to do so on a massive scale.
The group currently has a portfolio of 518 hotels across 12 European countries, but if it is to meet its ambitious goal of growing its stock to 3,000 properties by 2030, it’s going to need to look beyond the confines of this competitive market.
Following the chain’s arrival in Brazil with four new properties, it signed a mergers and acquisitions deal that will facilitate operations in Japan, Canada, Mexico, Morocco, South Africa and possibly Nigeria.
B&B Hotels’ CEO Fabrice Collet said, “If we want to continue to support our customers, we would need 5,000 hotels. It is possible to reach 3,000 by 2030. We are considering acquisitions of hotel companies or portfolios of establishments.”
B&B Hotels to become a big player in the budget sector
“The consolidation of the sector will happen. There will be a handful of global players, such as Accor. And B&B has a say,” says Collet.
For B&B Hotels to be able to stand up to the competition, it will need investment, but luckily, with Goldman Sachs behind it, this shouldn’t be an obstacle in its success. Because of this heavyweight association, B&B has had no shortage of interest from other investors keen to help the brand meet its goal.
Portfolio management company Primonial REIM sees B&B Hotels as an opportunity to diversify its assets, and so has jumped on board. As a sign of their commitment to the group’s expansion, they have pledged the tidy sum of €50 million per year for the duration of its 15-year partnership with B&B Hotels.
This sum will cover the development of a few dozen hotels, but no doubt this will have a knock-on effect when other investors see Primonial REIM reaping the fruits of its labour.
FREE EUROPE REPORT
You would like to know more about the upcoming hotel projects in Europe? Download our latest construction report with a detailed overview of the current project pipeline.