Minor Hotel Group Monday completed its acquisition of Tivoli Hotels & Resorts for €294.2 million (US$318.6 million). Tivoli’s portfolio, which includes a dozen hotels in Portugal and two in Brazil, makes the acquisition the largest hospitality transaction in Portugal and the first step of the Bangkok-Thailand based hotel owner and operator into Europe.
Dillip Rajakarier, chief operating officer of Minor International and CEO of Minor Hotel Group, said he was “bullish” on the Portuguese market and believes that the country is “at the beginning of a steady, multi-year recovering economy” whose rebounding tourism industry will directly benefit Tivoli. From a distribution perspective, Rajakarier said, the addition of sites in Europe and Latin America allow cross-selling with other regions where the group operates, including Asia, Africa and the Middle East.
Tivoli’s scale also gives it leverage to explore expansion elsewhere in Europe, “be it single-asset acquisition, greenfield development, joint venture, management contract, variable lease or luxury residential development,” he said.
Rajakarier said MHG plans to invest in the hotel brand’s assets and infrastructure to build on Portugal’s recovering tourism industry, including a refurbishment of the Tivoli Lisboa. “Over the coming years we also intend to expand the reach of the Tivoli Hotels brand further in Europe, Latin America, the Middle East, Africa and Asia,” he said.
“Tivoli has a strong team, excellent brand heritage, well-located, irreplaceable assets and strong cash flows,” Rajakarier said. “Overall, all of these elements come together to offer a robust offering which fits Minor Hotel Group’s global growth strategy.”
Tivoli’s previous owner, Espirito Santo Group, entered insolvency last year. MHG’s acquisition was completed in stages over the past year after dealing with with administrators and stakeholders in Luxembourg, Portugal and Brazil. The portfolio totals nearly 3,000 rooms, including three hotels in Lisbon, two in the town of Sintra and others in the country’s Algarve region. In Brazil, Tivoli has hotels in Sao Paulo and Salvador.
“Our main focus is to maintain the 14 hotels as Tivoli,” Rjakarier said.
The acquisition caps a two-year series of investments totaling more than US$550 million around the world. The company’s hotel portfolio, in which it is an owner, operator and investor, totals 145 properties in 22 countries. Rajakarier said Minor would remain an opportunistic buyer and consider possible purchases in Europe and Latin America, along with elsewhere in its portfolio.