Spurred by Eurazeo’s financial and strategic support between 2005 and 2010, B&B Hotels evolved from a small, regional company into a well-known brand in the European budget hotel sector. When Eurazeo invested in 2005, B&B Hotels had built its presence in France and had entered Germany.
However, private equity backing was the catalyst for an ambitious expansion plan, which saw B&B hotels open in Hungary, Italy, Poland, Portugal and The Netherlands. Growth continued through the combination of a new build programme and acquisitions of existing hotels. Thanks to its growing reputation across Europe, B&B Hotels caught the attention of fellow private equity firm Carlyle Group in 2010, which bought the company with plans to continue European expansion.
We could never have brought about this type of transformation as quickly without the full support of our shareholders.
Georges Sampeur CEO, B&B Hotels
What did the business need?
- Capital to finance expansion plan
- Strategic support to acquire and renovate hotels
- Marketing expertise to support rapid expansion plans
- Stronger management team to run an international business
How did private equity backing create lasting value?
- Structured and recruited B&B Hotels’ new management team
- Reviewed brand identity and transformed all B&B Hotels product offerings
- Implemented an extensive refurbishment programme
- Supported new hotel construction and acquisitions
- Expanded into new markets including Italy, Poland and The Netherlands
What outcomes did private equity investment achieve?
- Expanded B&B network to 223 hotels in 2010 from 117 in 2005
- More than doubled revenues to €178m in 2009 from €82m in 2005
- Increased profits to €71.2m in 2009 from €31.6 million in 2005
- Grew employee numbers to 505 from 415