Context

This transaction represents a massive secondary leveraged buyout wherein Goldman Sachs acquires the entire share capital of B&B from its historical financial sponsor, PAI Partners. Following a highly successful holding period marked by explosive operational growth and a near-doubling of profitability, the exiting French private equity fund secures a highly lucrative exit. Executed through preemptive exclusive negotiations before a formal auction process, this new corporate partnership will provide B&B with the immense capital backing required to aggressively accelerate its global footprint expansion, specifically targeting rapid establishment rollouts across new international markets.

Target

Founded in 1990, B&B Hotels is a leading independent economy hotel chain. The company’s business model is based on an "écono-chic" concept, offering high-quality essential services (bedding, Wi-Fi, breakfast) at a moderate price point for both business and leisure travelers. Its value proposition centers on a standardized guest experience with an optimized cost structure, which has earned the group multiple awards for design and innovation. Strategically, as of September 30, 2015, the group operated a platform of 343 hotels and over 28,500 rooms across seven countries: France, Germany, Italy, Spain, Poland, the Czech Republic, and Morocco. B&B has established itself as a European benchmark in the budget hospitality sector through disciplined international expansion and a strong, functional brand identity.