Paris-based ANF Immobilier announced in its half-year earnings report that it is in talks to sell its 167-property B&B Hotels portfolio in France.
ANF Immobilier said it received an offer from a consortium comprising Foncière des Murs and La Française REM valued at €503.5 million (US$631.7 million) for the portfolio.
The offer consists of an initial purchase of 160 hotels, with the remaining seven remaining hotels also sold to the consortium at a later date with the price possibly adjusted to reflect investments made. ANF Immobilier will repay the mortgage debt on the assets accordingly as the hotels are disposed of.
ANF Immobilier said the sale could be completed in November 2012. In addition to this, the company is also considering a separate offer for non-hotel commercial and residential property it holds from Grosvenor Group. The two transactions are subject to a number of precedent conditions, notably funding conditions for the consortium, as well as completion of audits.
“The deal is good, generating a fair-added value for ANF Immobilier. Most of this portfolio comes from new built hotels in good shape,” Georges Panayotis, president of MKG Consulting, Paris, said about the proposed deal. “During the difficult 2009 year, B&B managed to increase its revenue and RevPAR index, while capturing a new clientele and building a new image. The challenge is for the brand to keep these new clients once the economic situation improves.”
In addition to France the budget B&B Hotels brand, operated by B&B Hotels Group, Brest, France, also has 63 hotels in Germany, Italy, Poland and Portugal.
Investment firm Eurazeo, Paris, holds the majority stake in ANF Immobilier as well as an 8.9% stake of Accor, Courcouronnes, France. Eurazeo sold B&B Hotels Group to Carlyle Group for €480 million (US$602 million) in 2010.