Eurazeo, the owner of French budget chain B&B Hotels, has sold 159 hotel properties to its own property division for Eu471m.
The investment company’s move is an attempt to crystallize value in the chain via an op-co and prop-co split.
The 89% owned ANF bought the prop-co almost two years to the week since the completion of the Eu380m acquisition of the then 111 hotels by Eurazeo. Last year, B&B bought the 57-strong Villages chain, consolidating its position as the third biggest budget operator in France after Accor and Louvre Hotels.
Excluding the impact of the Villages acquisition, B&B showed 15.5% sales growth in the first quarter of this year. The latest deal is being financed with about 50% debt, according to reports.