Covivio has completed the disposal of budget hotels and retail assets worth €482m. The transaction represents a significant milestone in the group's strategy aimed at a move upmarket for the brand's hotel portfolio and divestment of non-strategic business.
The hotel portfolio includes 59 B&B properties located in the regions and in the Ile-de-France suburb and amounts to a total of €272m. The disposal delivers a yield rate of 5.04% (incl. fees). Upon the completion of the deal, Covivio will remain as owner of the 126 hotels operated by the B&B brand in France and intends to support the operator's development in Europe.
The company is also divesting 23 Jardiland assets (54% of the remaining portfolio, properties located on the outskirts of French cities) for an amount of €108m. Lastly, Covivio announced the sale of the Sunparks holiday village located in De Haan, in Belgium, for €102m.
"In 2018, the acquisitions and disposals carried out by Covivio helped to significantly improve the quality of our hotel portfolio, more than 80% of which is located in Europe's most dynamic markets, such as Berlin, Madrid, Paris, Amsterdam, and, more recently, London. Over and above geographic diversification, we have also worked on developing concepts within the portfolio with high-end innovative brands like Motel One, Voco, Kimpton, Meininger, Room Mate, Meridien," commented Dominique Ozanne, Deputy CEO of Covivio.
