Minor Hotel Group has completed its acquisition of Tivoli Hotels & Resorts, a Portugal-based brand with 14 properties across Portugal and Brazil. The takeover, which totals €294.2 million, marks MHG’s strategic entry into Europe and Latin America and provides the group with an operating platform to grow in those markets.
This deal represents the largest-ever hospitality transaction in Portugal and is a highly accretive acquisition for MHG. The Tivoli business generates revenue of €121 million and normalized EBITDA of €31 million in 2015.
The acquisition was completed in separate stages over the course of more than 12 months. This final transaction follows MHG’s acquisition in 2015 of five Tivoli hotels in Portugal and two Tivoli hotels in Brazil, along with the Tivoli brand in Brazil. MHG is planning to grow the Tivoli brand into its other markets (including the Middle East, Africa and Asia) and invest further in the Tivoli hotel assets to further enhance the positioning of the brand across its markets.
This final stage of the brand’s acquisition comprises seven hotels in Portugal: in Lisbon, the 119-room Tivoli Jardim Lisboa Hotel, the 77-room Tivoli Sintra Hotel inSintra and the 30-room Tivoli Palácio de Seteais to the west of Lisbon; in the Algarve, the 324-room Tivoli Lagos Hotel Beach Club & Golf; the 280-room Tivoli Victoria Vilamoura Golf Resort Conference & Spa; The Residences at Victoria Clube de Golf and the 100-room Tivoli Coimbra Hotel in historic Coimbra north of Lisbon. These seven properties are part of the overall Tivoli portfolio of 14 hotels, for a total of 12 in Portugal and two in Brazil, with almost 3,000 keys in total.
The Tivoli acquisition is the latest in a series of international investments by Minor Hotel Group as part of its long term diversification strategy, which over the last two years has seen the group invest over €550 million in hotel projects in Southern and East Africa, Asia, Australia, South America and Europe. These investments include, in addition to Tivoli, a joint venture with Sun International, new hotel projects in Australia and Malaysia and investments with existing joint venture partners Rani Investment and Elewana Collection in Southern and East Africa.
With these additional Tivoli hotels, MHG’s overall hotel portfolio now totals 145 properties across 22 countries. Tivoli is a member of Global Hotel Alliance, to which three of MHG’s existing brands—Anantara, AVANI and PER AQUUM—also belong.