Hotel acquisition news : US-based global private investment company Starwood Capital Group has agreed to acquire Sofitel Budapest Chain Bridge Hotel, a luxury hotel in Budapest, Hungary from hotel operator Orbis Hotel Group for €75 million.

The Sofitel Budapest Chain Bridge Hotel is an eight-storied five star hotel located near the River Danube, Hungarian Parliament and has 357 rooms and suites.

Orbis Hotel Group manages the Central European operations of Accor, a French multinational hotel group as the sole licensor of all AccorHotels brands across 16 countries. The hotels that are part of its license include the Sofitel hotel brands among others.

The acquisition of Sofitel Budapest Chain Bridge Hotel by Starwood Capital Group will be done via the latter’s controlled affiliate and would need the approval of the European Union Merger Control Office.

Gilles Clavie, the President and CEO of Orbis Hotel Group on the Sofitel Budapest Chain Bridge Hotel acquisition by Starwood Capital Group, 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.”

According to Starwood Capital Group, this luxury hotel in Budapest will go through an extensive restoration and renovation program. This is expected to equip the Sofitel Budapest Chain Bridge Hotel to be in line with the modern luxury design of the Sofitel hotel brand.

The American private investment company says that Budapest is the most rapidly growing urban hotel market in Europe in 2018 owing to international leisure and corporate demand. Also, as a leading tourist destination in Europe, Budapest is an attractive cross-border real estate investment market, stated Starwood Capital Group.

Commenting on Starwood Capital acquisition of the Sofitel Budapest Chain Bridge Hotel, Keith Evans, the Vice President, European Hotels at the investment firm, 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.”

For more hotel acquisition news and hotel industry news, keep following Business-News-Today.com.

  Accor, Budapest, Hotel acquisition news, Hotel business news, Hungary, Orbis Hotel Group, Sofitel Budapest Chain Bridge Hotel, Starwood Capital Group