{"id":1004325716,"date":"2019-05-22T03:24:56","date_gmt":"2019-05-22T11:24:56","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004325716"},"modified":"2019-05-22T03:24:56","modified_gmt":"2019-05-22T11:24:56","slug":"goldman-sachs-to-buy-european-budget-hotel-chain","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/","title":{"rendered":"Goldman Sachs to Buy European Budget Hotel Chain"},"content":{"rendered":"
\"Image<\/a>

Image via Pixabay<\/em><\/p><\/div>\n

Since buying B&B Hotels three years ago, PAI Partners has grown the hospitality company from a local French player to an integrated hotel platform operating across 12 European countries and into Latin America with about 486 properties and nearly 43,000 guestrooms. Now the Paris-based private equity firm is ready to sell the budget hotel chain to Goldman Sachs, marking its fourth recent disposition from its PAI Europe VI fund.<\/p>\n

If the sale to Goldman Sachs Merchant Banking Division meets various approvals, it is expected to close in the second half of 2019. While PAI confirmed the exclusion negotiations with Goldman Sachs this week, neither firm disclosed financial details. But the Financial Times<\/em> is estimating it could be worth \u20ac1.9 billion, or $2.1 billion. When PAI acquired B&B Hotels in March 2016, it was valued at \u20ac790 million, or $882 million.<\/p>\n

Since it opened its first hotels in France in 1990, the budget hotel chain has grown, particularly after the acquisition by PAI, which accelerated international expansion. The chain now has hotels in 12 European countries including Austria, Switzerland, Belgium, Portugal and Slovenia, and has also opened in Brazil. Under PAI\u2019s ownership, B&B averaged one opening per week. The European private equity firm also invested heavily in refurbishing existing properties, resulting in PAI almost doubling EBITDA since acquiring B&B.<\/p>\n

If approved, the transaction would mark the fourth exit from the PAI Europe VI fund. Previous exits include the sale of Domus VI, a leading player in the European nursing home sector, and Konecta, a leading provider of outsourced contact centers and business process outsourcing services in Spain and Latin America.<\/p>\n

Busy European hospitality market<\/h2>\n

The planned sale of B&B comes as deals for European hotels<\/a> increased 52 percent in the last 12 months, according to data compiled by Bloomberg<\/em>. A first-quarter 2019 report about the European hotel investment market from CBRE also noted strong rate of investment for Europe\u2019s hotel sector over the same period. Investment volumes totaled \u20ac23 billion, or about $25.7 billion, according to the brokerage firm. Activity in the U.K., Spain and Germany, as well as the demand for alternative investments and operational real estate, helped drive the high investment volumes. The U.K., for example, had \u20ac8.2 billion\u2014approximately $9.2 billion\u2014in hotel transactions during the 12 months ending the first quarter of 2019, a 15.1 percent increase.<\/p>\n

Goldman Sachs investment deals<\/h2>\n

Goldman Sachs Merchant Banking Division, the bank\u2019s investment arm, is one of the biggest in the world with $20 billion in private equity investments made at the end of 2018, according to Bloomberg<\/em>. The merchant banking division has been active in the U.S. real estate market in recent months.<\/p>\n

In May, a Goldman Sachs venture with Lincoln Property Co. acquired Field Office<\/a>, a 304,500-square-foot creative office campus in Portland, for $118 million from developers Project^ and National Real Estate Advisors LLC.<\/p>\n

In April, the merchant banking division formed a joint venture with MRP Realty to recapitalize a four-building portfolio in Philadelphia<\/a>. The amount was not released but the portfolio consists of three Class A office properties, one of which includes a parking garage: 400 Market St. (181,587 square feet), 325 Chestnut St. (206,816 square feet) and The Bourse (305,922 square feet), along with The Bourse Garage (453 parking spaces). The most recent loan on the portfolio was for $114.2 million in April 2018 from Aareal Bank, according to Yardi Matrix.<\/p>\n","protected":false},"excerpt":{"rendered":"

PAI Partners, a leading European private equity firm, confirmed it is in exclusive negotiations to sell B&B Hotels, which has 486 hotels in 12 countries.<\/p>\n","protected":false},"author":1068,"featured_media":1004325743,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21743,21808,21751,16,21742],"tags":[32789,33435],"class_list":["post-1004325716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-deals","category-featured","category-hotel","category-international","category-latest","tag-cbre","tag-goldman-sachs"],"acf":[],"yoast_head":"\nGoldman Sachs to Buy European Budget Hotel Chain - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Goldman Sachs to Buy European Budget Hotel Chain\" \/>\n<meta property=\"og:description\" content=\"PAI Partners, a leading European private equity firm, confirmed it is in exclusive negotiations to sell B&B Hotels, which has 486 hotels in 12 countries.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-22T11:24:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/\",\"name\":\"Goldman Sachs to Buy European Budget Hotel Chain - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg\",\"datePublished\":\"2019-05-22T11:24:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg\",\"width\":800,\"height\":620,\"caption\":\"Image via Pixabay\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Goldman Sachs to Buy European Budget Hotel Chain\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Goldman Sachs to Buy European Budget Hotel Chain - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/","og_locale":"en_US","og_type":"article","og_title":"Goldman Sachs to Buy European Budget Hotel Chain","og_description":"PAI Partners, a leading European private equity firm, confirmed it is in exclusive negotiations to sell B&B Hotels, which has 486 hotels in 12 countries.","og_url":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2019-05-22T11:24:56+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg","type":"image\/jpeg"}],"author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/","url":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/","name":"Goldman Sachs to Buy European Budget Hotel Chain - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg","datePublished":"2019-05-22T11:24:56+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg","width":800,"height":620,"caption":"Image via Pixabay"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/goldman-sachs-to-buy-european-budget-hotel-chain\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Goldman Sachs to Buy European Budget Hotel Chain"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/05\/hotel-guestroom.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004325716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004325716"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004325716\/revisions"}],"predecessor-version":[{"id":1004325791,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004325716\/revisions\/1004325791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004325743"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004325716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004325716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004325716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}