Return to our Home page Search
Click here for the hotel and hospitality news from around the globe Hotel, Travel and Hospitality Articles Videos and in-depth Interviews
Read more now
Read more now
Read more now
Read more now
NH Hotel Group disposes Amsterdam asset.
Friday, 27th June 2014
Source : NH Hotel Group
NH Hotel Group sells the Amsterdam Centre hotel, which it will continue to operate, on very favourable term;

The operation involves the sale and leaseback of the NH Amsterdam Centre, amounting to €52,4 million with an initial duration of 20 years with the option to extend it up to 60 years.
  • The capital gain of €3,9 million exceeds the EBITDA loss that the lease agreement will imply this year
  • The favourable conditions of the transaction allow decreasing the business loss originally contemplated in the divestment plan amounting to €125 million
  • The agreement would potentially imply future collaborations with the biggest hotels assets owner in France, that could allow increasing the presence of NH in this country and mainly in Paris
NH Hotel Group has reached an agreement with Foncière Des Murs, the dedicated hotel and services subsidiary of French group Foncière des Régions, encompassing the sale of its NH Amsterdam Centre hotel in the Netherlands at a value of €52.4 million, implying an accounting gain for NH of €3.9 million.

The favourable conditions of the transaction allow decreasing the business loss originally contemplated in the divestment plan amounting to €125 million, evidencing NH Hotel Group’s ability not only to deliver on its guidance but even to surpass it.This transaction is part of the disposal commitments made by NH last year in order to finance part of the capital expenditure programme implied by the 5-year business plan which the Company is in the process of meticulously executing, having already made signficant progress.

“This transaction is particularly advantageous not only because it marks substantial progress on one of the Group’s core commitments but also because it opens the door to new alliances between NH Hotel Group and Foncière des Régions, potentially identifying business development opportunities in France, particularly Paris, with a benchmark partner which boasts a solid track record in the Continental real estate and hotel sectors”,said Federico González Tejera, CEO of NH Hotel Group.

Relying on the dynamism and capacity for innovation of the NH Hotel Group, and on Foncière des Régions' self-sufficiency in its 360° expertise as regards hotel real-estate, the two partners intend to develop their partnership.
The sale of the NH Amsterdam Centre includes a leaseback agreement between the two parties which will allow NH to continue to operate the hotel for an initial period of 20 years with an option to extend it for 10 more years on four subsequent occasions. As a result, NH will be in a position to maintain its leadership in Amsterdam, where the Company operates 13 hotels with close to 3,000 rooms.

Meanwhile, the rent agreed upon with the new owner has been set using a very favourable coverage ratio, which will enable NH to retain the bulk of the EBITDA generated by this establishment over the 60-year operating period contemplated under the agreement.
Visit Unplugged Collection
 Latest News  (Click title to read article)

 Latest Articles  (Click title to read)

 Most Read Articles  (Click title to read)

~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.

© Copyright 4Hoteliers 2001-2017 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here

Use of this web site is subject to our
terms & conditions of service and privacy policy