B&B Hotels
Country: France
Region: Bretagne
Investors: Eurazeo
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 helped the company to continue its expansion, opening 110 hotels across Europe over the next six years.
Georges Sampeur
CEO - B&B Hotels
We could never have brought about this type of transformation as quickly without the full support of our shareholders.
5
new countries entered
22%
increase in employee numbers to 505
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
Investors
