NH Hotel Group has reached an agreement with Covivio, one of the main real estate operators in Europe, with which it consolidates its commitment to the luxury segment, reinforces its position in Italy and increases its presence in destinations such as France or Eastern Europe.
As reported by the company in a statement, this agreement will start operating in the eight high-end hotels, belonging to the Boscolo portfolio, which the Covivio real estate investment group acquired recently.
Specifically, NH Hotel Group has agreed with Covivio a long-term sustainable variable lease contract with guaranteed minimum, which includes a loss protection mechanism.
The agreement has an initial duration of 15 years, extendable at the option of NH Hotel Group for a period not less than 15 years. In addition, it is expected that the transaction will be fully completed by the end of the first half of 2020.
The delivery of the hotels will occur at the same time as the closing of the transaction, except in the case of the establishments in Florence and Nice, which are in the process of comprehensive reform. In these two cases, the transaction is expected to occur in June 2020 and January 2021, respectively.
The portfolio includes five and four star hotels in Rome, Florence, Venice, Nice, Prague and Budapest and involves adding 1,115 rooms to the group’s luxury range.
The CEO of NH Hotel Group, Ramón Aragonés, has affirmed that, after integration with Minor Hotels, this operation represents a milestone «of enormous magnitude» of the company to continue bringing the luxurious brand ‘Antara Hotels & Resorts’ to Europe.
He has also indicated that it represents a significant advance in the strategy of creating added value to the NH Collection customer base, with new hotels and destinations.