Carlyle in talks to acquire Eurazeo’s B&B Hotels chain

PARIS Private equity firm Eurazeo is in exclusive talks to sell its B&B Hotels Ltd. chain to rival Carlyle Group for approximately €485 million, Eurazeo says.

Eurazeo and Carlyle are engaged in a period of exclusive negotiations for the chain, with negotiations set to expire later this week, although the talks could be extended if certain financial conditions are met, Eurazeo says.

If the deal goes through, Washington, D.C.-based Carlyle would become B&B Hotels’ third owner in five years; Eurazeo acquired it from London-based Duke Street Capital in 2005 for an undisclosed sum.

B&B Hotels comprises 215 budget hotels in Europe with more than 16,000 guestrooms. Eurazeo has almost doubled the number of hotels in B&B’s portfolio since acquiring the brand.

Published reports have previously linked Eurazeo’s B&B divestiture to other private equity firms including Bridgepoint Capital Ltd., LBO France and Starwood Capital Group.