Sofitel Budapest Chain Bridge Hotel Sold to Starwood Capital
Starwood Capital Group announced today that it has entered, through a controlled affiliate, into the sale and management back transaction to acquire the Sofitel Budapest Chain Bridge Hotel from Orbis Hotel Group, the leading hotel operator in Eastern Europe.
Sofitel Budapest is a landmark hotel with 357 rooms located at an iconic address in the heart of the city. The hotel enjoys spectacular views of the famous Chain Bridge, historical monuments and the Danube River. The hotel is being acquired for €75 million, subject to the approval of the European Union Merger Control Office. The hotel will undergo an extensive restoration and renovation plan equipping the hotel with the modern luxury design of the Sofitel brand.
The transaction unlocks an attractive partnership with Accor and Orbis in the rapidly developing CEE region. Budapest is the fastest growing urban hotel market across Europe in 2018, which benefits from a balanced mix of international leisure and corporate demand. The city has become a sought after European tourist destination, as well as an attractive cross-border real estate investment market.
“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,” 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 Accor and Orbis.”
“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.