US-based private equity group Starwood Capital is seeking buyers for its international budget hotel operator Louvre Hotels Group (LHG), according to French media reports, with the sale expected to raise €1.2 - €1.5 billion.
Louvre Hotels has more than 110 operating properties under the Premiere Classe, Campanile, Kyriad, and Golden Tulip brands in 47 countries.
Starwood completed the sale of its Concorde Hotels luxury chain in 2013, selling the Paris Concorde Opéra hotel to Blackstone for approximately €150m and four hotels in Paris, Nice and Cannes to Qatari sovereign wealth fund Qatar Holding for a reported €700m-€800m.
At the time, Starwood claimed it did not plan to sell Louvre Hotels, but French daily Les Echos said the equity group has now tasked Goldman Sachs and Deutsche Bank to find a buyer.
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According to a source, Starwood wants to take advantage of the inflow of funds into real estate markets a €1.2 billion - €1.5 billion sale would represent more than 10 times LHG's annual gross operating profit.
Starwood (which founded and once owned Starwood Hotels & Resorts) acquired the budget and luxury hotels as part of its US $3.2 billion purchase of Societe Du Louvre in 2005.
The Louvre Hotels Group was formed in 2011 by bringing together the budget hotels division Louvre Hotels and Golden Tulip, which was purchased in 2009.
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