Source: TOPHOTELPROJECTS

The NH Hotel Group has turned down a merger offer from Barceló, which is one of its rivals.

Barceló's offer was unsolicited, and it valued NH Hotels at roughly $3 billion. This merger offer was made back in November. Had it been accepted, the combined Spain-based group would have possessed a portfolio of 478 properties with a combined total of 89,000 rooms.

Merger Offers

NH Hotel's board said Barceló's proposal just didn't create "shareholder value over and above that which NH stands to create on a standalone basis." In other words, the offer wasn't enough. In a statement published to its website, however, NH Hotel now appears to have left the door open to new offers moving forward.

"The Board of Directors of NH Hotel Group has met today and carried out an in-depth study of the unsolicited bid it received from Barceló Group," the group wrote in the statement on its website. "In order to assist the internal review process, the Board enlisted the services of Bank of America Merrill Lynch to provide a financial analysis. This has supported the Board's decision to unanimously decline the proposed transaction."

Later in the same statement, the board dropped its openness to a potential merger, should the right offer come along, writing, "Furthermore, the value of its hotel assets and the potential benefits from the improvement of its net financial position will pave the way for opportunities to expand and the chance to participate in prevailing hotel sector consolidation in the future."

Other NH Hotel Deals

While NH Hotel Group turned down the Barceló offer, it has recently made other deals. In November, the company agreed to sell and leaseback Barbizon Hotel in Amsterdam, valuing that property at $186 million.

There are, however, some other factors that could complicate potential mergers for NH Hotels. One is that Chinese conglomerate HNA Group holds a 30 percent ownership stake. As recently as last year, though, reports suggested that HNA was possibly willing to sell that in order to raise money.

About NH Hotels

NH Hotel Group is a world-leading urban hotel operator and a consolidated multinational player. It operates nearly 400 hotels and as many as 60,000 rooms in 31 countries. It has hotels in Europe, the Americas and Africa. The top destinations where it has hotels are Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Dusseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.

The following projects are currently underway by NH Hotel Group

NHOW – London

Located in a 5.5-acre, mixed-use development called 250 City Road, the eight-story hotel will feature a restaurant, bar, gym and meeting rooms. …[READ MORE]

NH Hotel Essen

The former DGB house is now being demolished and a hotel will be erected. …[READ MORE]

nhow Amsterdam RAI

The four-star nhow Amsterdam RAI will be the largest hotel in the Benelux. …[READ MORE]

More information on NH Hotels can be found on TOPHOTELPROJECTS, the specialized service provider of cutting-edge information of the hospitality industry.

Jule Grass
Marketing Manager
+49 4261 4140 309
TOPHOTELPROJECTS