GROUPE B&B HOTELS
Acquired by
PAI PARTNERS
GROUPE B&B HOTELS acquired by PAI PARTNERS
Target
GROUPE B&B HOTELS
Acquirer
PAI PARTNERS
Context
PAI Partners entered into exclusive negotiations with The Carlyle Group and Montefiore Investment to acquire 100% of the B&B Hotels Group alongside the existing management team. The transaction was funded by PAI Europe VI. The strategic rationale for PAI is to capitalize on one of the most highly valued brands in the European hospitality industry to accelerate the pace of hotel openings both in Europe and internationally. For Carlyle and Montefiore, this exit marks the conclusion of a significant value-creation cycle that transformed B&B into a truly pan-European platform. The transaction aims to provide B&B with the institutional support required for its next phase of global expansion while ensuring leadership continuity under CEO Georges Sampeur.
GROUPE B&B HOTELS, which reported an EBITDA margin of LOGIN in 2016, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the Retail & Consumer sector (11.0x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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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.
Ent. Value
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Multiples Analysis
EV / Revenue
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EV / EBITDA
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Historical Financials (EUR)
Other operations with GROUPE B&B HOTELS
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 05/2019 | GOLDMAN SACHS | GROUPE B&B HOTELS | FRANCE | Hospitality & Leisure | 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. |
REFERENCES
Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: groupe b&b hotels
Acquirer: pai partners