Covivio completa la dismissione di asset non strategici – budget hotels e retail – per €482m

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^[2] 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