Starwood Capital Group, a leading global private investment firm, announced today that it has entered into the sale and management back transaction to acquire the Sofitel Budapest Chain Bridge Hotel from Orbis Hotel Group, the Poland-based hotel operator in Eastern Europe.
The transaction unlocks an attractive partnership with Accor and Orbis in the rapidly developing Central and Eastern Europe region.
Sofitel Budapest is a landmark hotel with 357 rooms located at an iconic address in the heart of the city. The hotel enjoys spectacular views of the famous Chain Bridge, historical monuments and the Danube River. The hotel is being acquired for €75 million, subject to the approval of the European Union Merger Control Office. The hotel will undergo an extensive restoration and renovation plan equipping the hotel with the modern luxury design of the Sofitel brand.
The Orbis Hotel Group is the largest network of hotels in Poland and in Eastern Europe ranging from luxury 5-star to budget 1-star hotels. Orbis comprises 120 hotels and is the sole licensor of AccorHotels brands (including Adagio – the no. 1 aparthotel brand in Europe) in 16 countries.
According to various accounts, Budapest is the fastest growing urban hotel market across Europe in 2018, which benefits from a balanced mix of international leisure and corporate demand. The city has become a sought after European tourist destination, as well as an attractive cross-border real estate investment market.