As part of the transaction, to be completed in the coming months subject to the approval of the European Union Merger Control Office, Starwood Capital Group through a controlled affiliate will acquire the iconic luxury hotel of Budapest, to be continued to operate under the “Sofitel” brand by Orbis in the frame of a long term management agreement to conclude for an initial period of 30 years. In scope of the above-mentioned agreement, Sofitel Budapest Chain Bridge will undergo an extensive restoration and renovation plan equipping this landmark hotel with modern luxury premises of the chic Sofitel brand.
The purchase price for the Hotel has been agreed at the amount of c.a. EUR 75.000.000.
“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.”, highlighted Gilles Clavie, President and CEO of Orbis Hotel Group.
“We are delighted to be acquiring this iconic European hotel in this high demand hospitality market, while partnering with AccorHotels and Orbis on this transaction,” said Keith Evans, Vice President, European Hotels at Starwood Capital Group. “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 AccorHotels and Orbis.”
Sofitel Budapest Chain Bridge is part of AccorHotels’ authentic luxury brand that blends local culture and French art de vivre to create magnificent moments for international travelers seeking a uniquely elegant experience. Boasting spectacular views of the famous Chain Bridge and a prime location at the River Danube in downtown, with its luxury spa with pool and sauna, restaurant with show kitchen and a stylish bar, state-of-the-art function rooms, Sofitel Budapest is an iconic address in the heart of Budapest.