Ireland’s largest hotel operator PREM Group has, together with Goodbody Stockbroker, acquired a portfolio of hotels in Belgium and France, making it the second largest hotel operator in Belgium.
Ireland’s largest hotel operator PREM Group has, together with Goodbody Stockbroker, acquired a portfolio of hotels in Belgium and France, making it the second largest hotel operator in Belgium.
The deal was completed through The European Hotel Consortium, a joint venture formed by PREM and Goodbody to invest in the European hotel market, and is the latest in a series of acquisitions spurred by PREM Group’s €100 million (c.£70 million) European expansion programme announced last year.
The hotels, which are branded Holiday Inn, Holiday Inn Express and Crowne Plaza, are based in Hasselt, Mechelen, Antwerp, Ghent, Ostend and Calais.
This latest deal brings its number of properties to 13 and follows the €48 million (c.£33 million) acquisition of four hotels last year. Its portfolio is now valued at €130 million (c.£91 million). Further acquisitions are anticipated.
Jim Murphy, PREM Group MD, said: “We already have a strong presence in Ireland and the UK and are now developing opportunities across Northern Europe. We have a strong track record in the premium sector of the hotel market which is where we see real growth opportunities. Our efforts are focussed on hotels based in urban areas with good central locations offering premium standard accommodation and good strong brand names.”
Allied Irish Bank was arranger and sole debt provider on the acquisition. Aodhan Hobbs, head of the hotels team in AIB Corporate Banking Ireland, and James Nolan led the advisory.
Commenting on the bank’s involvement, Hobbs said: “We supported PREM Group’s initial acquisitions of hotels in Belgium and therefore led the transaction in this instance.
“This is an excellent deal for our client as it gives them scale, diversity and an opportunity to bring their management skills to the Belgian hotel market. It also demonstrates the confidence of Irish hoteliers to take leadership positions in new markets. AIB Corporate Banking Ireland was delighted to support the growth ambition of this strong management team.”
Brussels-based law firm Verhaegen Walravens acted as legal counsel to the purchaser through Belgian subsidiary Four-Leaf Invest. Partners Jacques Verhaegen and Anouk De Graef led the transaction team.
“We have acted as Belgian counsel in relation to PREM Group’s activities in Belgium for some time now,” Verhaegen said. “We had to work to tight deadlines on this transaction considering the multi-disciplinary approach that had to be adopted across the jurisdictions of Ireland, France and Belgium.”
