Starwood to buy Sofitel Budapest hotel in Hungary for €75m
US-based private investment firm Starwood Capital Group has entered, through a controlled affiliate, into the sale and management back transaction to buy the Sofitel Budapest Chain Bridge Hotel in Hungary from Polish hotel operator Orbis Hotel Group.
Subject to the approval of the European Union Merger Control Office, the 357-room hotel is being acquired for €75m, while it will undergo an extensive restoration and renovation plan equipped with the modern luxury design of the Sofitel brand.
Starwood Capital Group European Hotels vice-president Keith Evans said: "We are delighted to be acquiring this iconic European hotel in this high demand hospitality market, while partnering with Accor and Orbis on this transaction.
"With its irreplaceable location and strong cash flow, the hotel has attractive growth and significant repositioning potential. We look forward to investing in this property and leveraging Starwood Capital Group's hospitality expertise to help drive future growth together with our partners at Accor and Orbis."
The deal unlocks an attractive partnership with Accor and Orbis in the developing Central and Eastern Europe (CEE) region.
Orbis Hotel Group president and CEO Gilles Clavie said: "We are very pleased to enter into this transaction with Starwood Capital, a leading global private investment firm. This project opens a partnership for potential cooperation in the future.
"In line with Orbis Hotel Groups' portfolio strategy the aim of the sale and management back transaction of Sofitel Budapest Chain Bridge is gaining financing for further development in the region and increasing of the return on capital invested, reinforcing our sustainable growth."
The Orbis Hotel Group has 120 hotels and is the sole licensor of AccorHotels in 16 countries including Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia.