NH Hotel Group reinforces its leadership of the urban hotel segment in Spain with a new agreement for the management of 28 hotels of its shareholder Grupo Inversor Hesperia
- NH Hotel Group agrees with Grupo Inversor Hesperia a commitment to rebrand and invest in repositioning its hotel portfolio
NH Hotel Group informs about the signing of the final contract documents after completion of the conditions precedents as indicated in the Letter of Intent, that has been unanimously approved by the Board of Directors last December 5th 2016.
The 28 Hesperia hotels included in the agreement have 4,000 rooms and represent 30% of the portfolio operated under management contracts by NH Hotel Group. The portfolio includes six 5-star hotels, sixteen 4-star hotels and six 3-star establishments.
According to the terms of the new agreement, NH Hotel Group will integrate a total of 24 Hesperia hotels under its urban brands. This will reinforce the strong presence of the NH Hotels brand in Spain and consolidates the positioning of the upper upscale NH Collection brand in the country's top city destinations, offering a clear-cut upside in operational terms.
Furthermore, the four resort hotels will continue to operate under the Hesperia brand. These establishments, three of which are located in the Canaries and one in the Balearic Islands, have increased their revenue by 50% and doubled their operating profit over the past three years. For this reason, NH Hotel Group will benefit from managing a portfolio of representative resort hotels which will serve as platform for adding new properties under management agreements in this segment in Spain.
The new management agreement, which replaces and extends the old agreement from 2009, is expected to make an estimated net contribution of €7.2 million this year.
The transaction has been supervised by the Audit and Control Committee. External renowned advisors were involved in the due diligence process, the documentation of the agreements and the valuation report.
The new long term agreement, coupled with existing knowledge of the portfolio and its strategic fit in terms of hotel categories and geographic locations, will enable NH Hotel Group to take advantage of the favourable economic prospects from a position of even greater strength and leadership in the Spanish urban hotel segment.
About NH Hotel Group
NH Hotel Group (www.nhhotelgroup.com) is a world-leading urban hotel operator and a consolidated multinational player. It operates close to 400 hotels and almost 60,000 rooms in 30 markets across Europe, the Americas, Africa and Asia, including top city destinations such as Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Düsseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.