Goldman Sachs in talks to buy B&B Hotels for $2.1 billion

The chain’s turnover has jumped by 61% to $623 million since
2015.

PAI Partners looks to sell rapidly growing B&B Hotels for
nearly three times its purchase value of 2015 to Goldman.

Prices of promising groups are soaring in the hotel
industry.

Even before the launch of a possible sales process, Goldman Sachs approached the
French fund PAI
Partners
to buy B&B
Hotels
at a record price of $2.1 billion. That is the
equivalent of $49,000 per room and nearly $4.5 million per
hotel.

A solid ROI for PAI Partners

Only three years ago, the French fund had acquired the brand
with its 320 establishments for about a third of the price.

Today the chic budget chain has 486 establishments with 42,832
rooms and its turnover has jumped by 61% to $623 million since
2015.

B&B Hotels’ CEO Fabrice
Collet
indicated in April that the company’s EBITDA (earnings
before interest, tax, depreciation and amortization) was growing
faster than sales and remains beyond 20% of its business
volume.

B&B Hotels: an enviable story

Led by the iconic Georges Samper, the group underwent a complete
transformation in only a few years.

In addition to growing the business segment by more than 20% per
year, Fabrice
Collet
launched the brand in Spain, Italy and Germany.

As a result, according to MKG, the budget hotel group has risen
to the top of its market in both Italy and Germany.

To spur such exemplary growth and quickly grow their portfolio,
B&B Hotels optimised the traditional process of acquiring and
launching new properties. The company has also favoured a direct
and more efficient mode of distribution, trying to minimise
dependence on platforms like Booking.com.

An eye on Brazil

B&B Hotels is now working hard to grow internationally. The
group announced plans for Brazil, where it already owns two
establishments in the State of São Paulo and Minas Gerais.

Fabrice
Collet
plans to open three more hotels there this year. In
total, there are still some fifty establishments set to open under
their budget-chic banner which means they are maintaining 2018’s
opening pace.

Let’s take a look at a few other projects currently underway
by B&B:

B&B Hotel Jena

B&B Hotel Hannover 

B&B Hotel Wien-HBF 

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Goldman Sachs in talks to buy B&B Hotels for $2.1 billion

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Source: FS – All-Hotels-Blogs
Goldman Sachs in talks to buy B&B Hotels for .1 billion