AccorHotels to Manage 26 BHG Hotels in Brazil
Brazil Hospitality Group (BHG) and its shareholders - Funds managed by GP Investments and GTIS Partners - announced an agreement with French group AccorHotels by means of which Accor will reflag and manage a portfolio of 26 hotels (4,400 rooms). AccorHotels will pay R$200 million for the transaction.
BHG is the largest owner of hotel real estate in Brazil and the third largest hotel management company. As soon as the transaction is completed, BHG will maintain a leadership position as a hotel management company, operating 20 hotels with 3,700 rooms in all categories, including the management of Marina Palace Hotel, a landmark hotel in Rio de Janeiro, Brazil.
The portfolio managed by AccorHotels includes hotels of economic, medium and high standard categories in several of Brazil’s main states, such as Rio de Janeiro, SÃo Paulo, ParÁ, ParanÁ, Rio Grande do Sul, Pernambuco, Mato Grosso, Bahia, Minas Gerais and MaranhÃo. Such portfolio will be progressively renewed and repositioned until the end of 2019, and will operate under the brands ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman.
“We are thrilled with the opportunities that this transaction creates for our company, our business partners and our teams," said Alexandre Solleiro, CEO of BHG. "Because 100% of the resources generated from this transaction will be reinvested in our owned hotels, we will be able to accelerate the repositioning and performance of BHG as a leading owner of hotels in Brazil.”
“In addition, we will also be able to better focus our resources and management teams in the development of our business of managing third party hotels through our owned (Soft Inn, Solare and The Capital) and licensed brands (Royal Tulip, Golden Tulip and Tulip Inn),” Solleiro added.
Both companies expect that the transaction will be completed in the last quarter of 2017, after approval by the Administrative Council of Economic Defense (CADE).
“Today’s Brazil is a land of major opportunities," said Sebastien Bazin, Chairman & CEO of AccorHotels.. "This transaction is a new milestone in the history of AccorHotels in this country, where we have been a firm leader for decades. It will bring new landmark hotels as well as an increased brand awareness across all segments. It also anchors a strong and long-term relationship with BHG, one of the largest owners of hotel real estate in Brazil, which will bring incremental growth opportunities going forward.”
BHG was advised by Avington and Accor was advised by ItaÚ BBA.
BHG is the largest owner of hotel real estate in Brazil and the third largest hotel management company. As soon as the transaction is completed, BHG will maintain a leadership position as a hotel management company, operating 20 hotels with 3,700 rooms in all categories, including the management of Marina Palace Hotel, a landmark hotel in Rio de Janeiro, Brazil.
The portfolio managed by AccorHotels includes hotels of economic, medium and high standard categories in several of Brazil’s main states, such as Rio de Janeiro, SÃo Paulo, ParÁ, ParanÁ, Rio Grande do Sul, Pernambuco, Mato Grosso, Bahia, Minas Gerais and MaranhÃo. Such portfolio will be progressively renewed and repositioned until the end of 2019, and will operate under the brands ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman.
“We are thrilled with the opportunities that this transaction creates for our company, our business partners and our teams," said Alexandre Solleiro, CEO of BHG. "Because 100% of the resources generated from this transaction will be reinvested in our owned hotels, we will be able to accelerate the repositioning and performance of BHG as a leading owner of hotels in Brazil.”
“In addition, we will also be able to better focus our resources and management teams in the development of our business of managing third party hotels through our owned (Soft Inn, Solare and The Capital) and licensed brands (Royal Tulip, Golden Tulip and Tulip Inn),” Solleiro added.
Both companies expect that the transaction will be completed in the last quarter of 2017, after approval by the Administrative Council of Economic Defense (CADE).
“Today’s Brazil is a land of major opportunities," said Sebastien Bazin, Chairman & CEO of AccorHotels.. "This transaction is a new milestone in the history of AccorHotels in this country, where we have been a firm leader for decades. It will bring new landmark hotels as well as an increased brand awareness across all segments. It also anchors a strong and long-term relationship with BHG, one of the largest owners of hotel real estate in Brazil, which will bring incremental growth opportunities going forward.”
BHG was advised by Avington and Accor was advised by ItaÚ BBA.