Cushman & Wakefield Hospitality supported B&B Hotels in disposing of a portfolio of two hotels to Primonial REIM, a leading independent real estate asset management group based out of Paris, France.
The deal comprised two properties, B&B Prague, located in Karlin, offering 160 rooms and B&B Budapest, a former office building that is being converted to B&B’s first hotel in Budapest with 214 rooms, Cushman & Wakefield Hospitality informed Property Forum.
The delivery of B&B Budapest is set to happen during summer 2021. The transaction was structured as a sale and leaseback to B&B Hotels. Primonial REIM, a leading independent real estate asset management group based out of Paris, was selected as a successor for both properties and entered into a long-term lease agreement with B&B Hotels. Cushman & Wakefield Hospitality advised B&B Hotels in this transaction and helped structure the deal.
“Hotel transactions encumbered by a lease agreement are still favoured, especially when a tenant with a strong covenant is offering a long-term agreement. Without a doubt, B&B Hotel’s reputation and positioning within the European hotel economy sector paired with their approach of having the most sustainable leasing terms were the key for this transaction to take place given the new market conditions,” commented Magsud Rahmanov, Head of Hotel Transactions in CEE & SEE at Cushman & Wakefield.
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