Global alternative asset manager The Carlyle Group and Montefiore Investment this week announced that they have entered into exclusive negotiations to sell Groupe B&B Hotels alongside its management team to private equity firm PAI Partners. Carlyle acquired B&B from Eurazeo in 2010 for an enterprise value of €480 million (US$521 million).
The equity for the transaction would be provided by PAI Europe VI, PAI’s latest €3.3 billion (US$3.6 billion) fund. PAI is a European private equity firm with offices in Paris, London, Luxembourg, Madrid, Milan, Munich and Stockholm. PAI manages €7.9 billion (US$8.6 billion) of dedicated buyout funds.
Founded in Brittany, France, in 1990, B&B as of September operated 343 high-end budget hotels with some 28,503 rooms across France, Germany, Italy, Spain, Poland, Czech Republic and Morocco. With 17,535 rooms and 234 hotels in France (including franchises), B&B Hotels is the third-largest budget hotel group in the country after Accor and Louvre Hôtels. In Germany, it is the second-largest budget hotel chain with 77 hotels.
PAI reportedly intends to continue investing in the growth of the B&B platform by accelerating the hotel opening pace across Europe and beyond.
“We are exceptionally proud of B&B’s achievements over the past 25 years and believe PAI’s institutional support will facilitate our plans for expansion and further enhance the service we provide,” said B&B Hotels President and CEO Georges Sampeur. “Our success underscores the appeal of our concept. We look forward to working with PAI and are thankful to Carlyle and Montefiore for their support over the years.”