Carlyle buys B&B Hotels from Eurazeo for €480m

Steve Dinneen
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US PRIVATE equity firm Carlyle Group has snapped up B&B Hotels from French holding firm Eurazeo in a deal valuing the chain at €480m (£413m).

Eurazeo announced in July it was in exclusive negotiations with Carlyle to sell the budget hotel chain.

B&B Hotels is France’s third-largest budget hotel group after Accor and Louvre Hotels, which is owned by US investment group Starwood capital.

The sale will generate proceeds of €184m for Eurazeo, based on estimated net debt at the end of September.

B&B Hotels also operates in Germany and is expanding in Italy, Poland, Portugal and Hungary.

In 2009, the hotel chain posted an 11.3 per cent rise in operating profit to €71m.

Eurazeo has a portfolio of almost €4bn in assets, with major shareholdings in companies including hotel group Accor and wholesaler Rexel.

Earlier this week Carlyle sealed a joint venture deal with Generation Estates, heralding a big push in the student accommodation sector.

The group recently scrapped plans to sell US defence and aviation group Arinc, after failing to find a buyer for the firm. Carlyle, is now thought to be pursuing an initial public offering.