Covivio has announced the sign-off of disposals worth €482m relating to budget hotels and retail assets. These operations, completed at higher than appraised values through the subsidiary Covivio Hotels, represents a significant milestone in the group’s strategy aimed at a move upmarket for the brand’s hotel portfolio and divestment of non-strategic business.
A hotel portfolio moving upmarket
Covivio has signed a sale agreement to an institutional investor for 59 B&B hotels located in the regions and in the Ile-de-France suburb, amounting to a total of €272m. The disposal of this portfolio delivers a yield rate of 5.04% (incl. fees). At the end of this operation, Covivio will remain as owner of the 126 hotels operated by the B&B brand in France and intends to support the operator’s development in Europe.
Ongoing disposal of non-strategic business
Covivio is also divesting 23 Jardiland assets (54% of the remaining portfolio, properties located on the outskirts of French cities) for an amount of €108m. Lastly, Covivio announced the sale of the Sunparks holiday village located in De Haan, in Belgium, for €102m.
Source : Company