Fonciere des Murs to buy 165 hotels in France from Carlyle for $646 mn

French real estate investment trust Fonciere des Murs, yesterday said that it will buy 165 hotels in France with over 12,000 rooms from private equity firm Carlyle Group's B&B Hotels for €508 million ($646 million).

Paris-based Fonciere des Murs, the sale-and-leaseback company controlled by Fonciere des Regions SA, has teamed up with Credit Agricole Assurances and Assurances du Credit Mutuel to acquire 165 B&B hotels, an operator of budget hotels in Europe.

Fonciere des Murs had in October 2010 acquired 18 hotels from B&B and plans to ease back the 165 hotels, which will bring in 6.9 per cent of the purchase price as rental income.

Fonciere des Murs said that B&B will retain ownership of the goodwill and management of these 2 star hotels, and will be responsible for the management and Asset Management of this portfolio.

''This new transaction will enable Fonciere des Murs to position itself as the preferred contact for B&B,'' according to the statement.

Fonciere des Murs specialises in business properties, especially in the hotel, healthcare and retail sectors.

It owns 171 hotels or spas, most of which are operated by Accor SA. Its other assets include retirement homes, clinics, garden centers and holiday villages. As on 31 December 2011, the company's asset base stood at €2.9 million.

B&B Hôtels now has 56 hotels in Germany, 9 in Italy, 2 in Poland, and 1 in Portugal.