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Covivio to buy European hotel portfolio: sources
Posted on Thursday, 07 November 2019 15:50
Covivio Hotels is to pick up a portfolio of luxury European hotels from private equity firm Varde Partners, according to Reuters.

Citing two sources close to the situation, the news provider said the deal is expected to be worth between EUR 500.00 million and EUR 600.00 million and is slated to close by the end of this year.

None of the parties involved have commented on the report and no further details are available at this stage.

Euronext-listed Covivio, which operates Covivio Hotels, claims to be the fourth-largest property company in Europe, with a portfolio worth EUR 23.00 billion and comprising hotels, offices and residential locations.

The group’s hotel locations number close to 400 and have a combined value of EUR 6.00 billion, while it describes itself as the main real estate partner of hotel operators in France and throughout Europe.

This is not the first time Covivio has been active in the markets this year, having offloaded non-strategic assets to an undisclosed industrial investor for proceeds of EUR 482.00 million back in January.

Reports of a deal with Varde emerged back in September, when Il Sole 24 Ore reported that the firm was close to buying Italian luxury resort operator Ingrid Hotels from the investor for EUR 600.00 million.

Earlier this week, Alexei Dal Pastro, head of Covivio’s Italian unit, said the firm was interested in investing in Italian hotels.

Those comments were made at a conference and picked up by Reuters.

Zephyr, the M&A database published by Bureau van Dijk, shows that there have been 592 deals targeting hotel operators announced worldwide during 2019 to date.

The largest of these saw Eldorado Resorts agree to buy Caesars Entertainment for USD 17.30 billion back in June.

© Zephus Ltd