NH Hotel Group has signed an agreement with Covivio, one of the largest property managers in Europe. With this agreement, NH Hotel Group expands its premium hotel offering, strengthens its market leadership position in Italy and increases its market share in the French and Eastern European hotel market. Following Covivio’s acquisition of eight premium hotels previously part of the Boscolo Group, the property manager and NH Hotel Group have agreed that NH Hotel Group will run these hotels.
The hotel chain and Covivio have signed a long-term lease, which includes a variable rent with a guaranteed minimum and a shortfall cap construction. The agreement has an initial term of fifteen years and offers NH Hotel Group the option to extend the term for another fifteen years. The transaction is expected to be completed by mid-2020. The transfer of the hotels will take place on the closing date, except for the hotels in Florence and Nice. These two hotels are currently undergoing a complete renovation and the handover of these hotels is therefore expected in June 2020 and January 2021 respectively.
“Following the integration of NH Hotel Group and Minor Hotels, we see this collaboration as a very important milestone in our shared ambition to be in Europe to further expand the Anantara Hotels & Resorts luxury brand. In addition, this transaction demonstrates that we are working on our strategy to serve NH Collection guests even better, by offering new hotels and destinations.”, let Ramón Aragonés, CEO of NH Hotel Gr
oup, know. “This agreement strengthens the collaboration between Covivio and NH Hotel Group. Our cooperation began in 2014 and has since led to transactions in the Netherlands and Germany that have been beneficial to both parties.”
With the former Boscolo hotels in Budapest, Florence, Nice, Prague, Rome and Venice, NH Hotel Group adds 1115 rooms to its fast-growing premium hotel offering. The portfolio consists of six five-star and two four-star hotels and includes flagship hotels such as Palazzo Naiadi in Rome, Plaza in Nice, Carlo IV in Prague and New York Palace in Budapest. The hotels are located in popular destinations and are centrally located. They will become part of the luxury hotel brand Anantara Hotels & Resorts and the premium hotel brand NH Collection. This rebranding is taking place gradually. Currently, Covivio is implementing extensive work in all of its hotels that offers great potential for growth in the medium term.
