NH Hotels plans to sell European hotel portfolio for €200M

NH Hotels plans to sell European hotel portfolio for €200M

Tivoli Avenida Liberdade Lisboa | Photo: Google Maps

Despite not having yet exactly determined how many hotels will be involved in the operation, market sources informed newspaper El Economista that «4 or 5 consolidated, non-strategic hotels» located in countries such as Portugal, Nederland and Germany are under analysis. For now, the same sources revealed that the hotels located in Spain should not be part of this set.

This process – which should be concluded as a sale &leaseback operation at a time of «greater stability», for around 200 million euro – it is still in the initial stages, during which NH Hotels will be assessing the investment funds’ interest on the segment. On this group are included companies with which NH Hotels concluded transactions during the last few years, such as French Covivio which paid 570 million euro for 8 units spread across different European cities.

Although NH Hotels’ drop in terms of revenues due to the pandemic is undeniable – at around -62.4%, having registered 309.3 million euro –, this operation is part of the group’s asset rotation strategy which was carried out before and which will allow the company to «reinforce its liquidity» on the long-term, revealed sources close to the hotel group to the same newspaper.

365 units in 29 countries

NH Hotels Group currently has a total 365 units spread across 29 countries in Europe, America, Africa and the Middle East, as revealed by the data which can be found on the company’s official webpage. Out of the 365, only 76 units are owned by NH Hotels.

In Portugal, the group has 17 hotel units under its management, spread across Lisbon (5), Algarve (6), Porto (2), Sintra (2), Evora (1) and Coimbra (1).

Last June, the group sold 3 units located in the Portuguese capital  - Tivoli Avenida Liberdade Lisboa, Tivoli Oriente Lisboa and AVANI Avenida Liberdade Lisbon – for 313 million euro to Invesco Real Estate in an operation led by Thai company Minor Internacional, owner of the hotel group.

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