Goldman Sachs mulls €3.5bn sale of B&B Hotels chain

Goldman Sachs Group’s private equity arm is exploring a sale of B&B Hotels in a potential deal that could value the European budget hotel chain at about €3.5 billion ($3.8 billion), according to people familiar with the matter.

Advisers at Goldman Sachs and Morgan Stanley are working to identify potential bidders for the business, which opened its first hotel in France in 1990, the people said. It’s drawn inbound interest after completing a €1.25 billion refinancing this month, according to the people.

The sale of B&B could attract hospitality groups as well as private equity bidders, the people said, asking not to be identified as the matter is private. Deliberations are in the early stages, and Goldman Sachs could decide to keep the business if offers don’t meet its expectations.



Representatives for Goldman Sachs and Morgan Stanley declined to comment.

B&B runs more than 770 budget-friendly hotels mainly across France, Germany, Italy and other European countries, according to its website. The company, which was founded in a port city in northwestern France, added more than 170 new hotels since 2022 and plans to continue on its expansion this year, the website shows. Goldman Sachs bought the business in 2019 from PAI Partners in a deal valuing B&B at €1.9 billion.

Financial investors are keen to expand in hospitality as more people spend money on travel and holidays following the pandemic. Ennismore, the luxury lifestyle hotel company backed by France’s Accor SA, is seeking to raise capital for expansion in the US, Bloomberg News reported in March. Saudi Arabia’s sovereign wealth fund agreed in December to buy a stake in Rocco Forte’s luxury hotel group.

© 2024 Bloomberg

Roy Walsh

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