Minor Completes Acquisition of Tivoli Hotels, What's Next?
Photo via Twitter/tivolihotels
Minor Hotel Group has completed its acquisition of Tivoli Hotels & Resorts in a deal valued at more than $318 million.
With Portugal-based Tivoli operating 14 combined hotels across Portugal and Brazil, this deal signals the largest hospitality transaction in Portugal's history. The acquisition is also notable as it marks Minor's entry into Europe.
And based on Tivoli's success, the acquisition promises to pay off for Minor.
The timing of the purchase also bodes extremely well for Minor, with Portugal's tourism sector currently in the midst of strong growth amid a recovery. Since Tivoli is generating approximately $130 million in revenue, Minor will be adding to its earnings per share as well.
In addition to providing the company with a strategic entry into Europe, the new properties will provide Minor with a solid starting point to grow from as 12 of Tivoli's 14 properties are located in Portugal.
READ MORE: Day Trips and Hidden Gems in Portugal
Minor Hotel Group CEO Dillip Rajakarier told HotelsMag.com the sale will provide the company with options in terms of expanding elsewhere on the continent, "be it single-asset acquisition, greenfield development, joint venture, management contract, variable lease or luxury residential development."
In the meantime, Rajakarier said the group plans to invest in the newly acquired assets.
"Our main focus is to maintain the 14 hotels as Tivoli," he told HotelsMag.com.
Down the road, Minor will look to build the brand beyond Portugal and Brazil, likely expanding into the Middle East, Africa and Asia.
In wake of the acquisition, Minor's overall hotel portfolio comprises 145 properties spread across 22 different countries.
"The Tivoli acquisition further cements MHG's position as a world-class hotel operator, with a portfolio now extending to Europe and South America," Rajakarier said in a statement. "Looking forward, we have already planned further investment into the Tivoli hotel assets and its operating and distribution infrastructure to realize the full potential of this strategic investment."
Minor's recent purchase comes on the heels of other investments in hotel projects in Africa, Asia, Australia, South America and Europe.
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