NH Hotel Group acquires Colombian group Hoteles Royal

By the end of 2015, NH Hotel group should be the 100-percent owner of Colombia's Hoteles Royal capital, acquired at a price of 65.5 million euros, or about $74 million. The transaction is expected to be partly financed with proceedings of the sale of NH Bogotà Parque 93 and NH Sotogrande.

NH Hotel Group announced it has signed an agreement to acquire the Colombian group Hoteles Royal. The transaction will be done in two stages, covering 80.77 percent of capital in the first stage; then the remaining 19.23 percent.

"This acquisition allows us to grow in South America, one of the targets in our five-year strategic plan, and without any impact on our future commitments. We are confident that incorporating Hoteles Royal in NH Hotels' portfolio will happen naturally and easily, and we expect this to be fully effective by the end of this year," saidFederico J. Gonzàlez Tejera, NH Hotel Group CEO.

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NH Hotels will gain a 20-hotel portfolio and 2,257 rooms throughout South America. Fifteen properties are in Colombia, four in Chile and one in Ecuador. Three hotels are owned and operated, 12 are leased, while five are under a management contract.

Until now, Hoteles Royal had a master franchise for the development of Radisson in Latin America, including six hotels in Colombia. Both parties have ended this agreement. Radisson will regain control of its development on the continent and the six Colombian hotels will join NH Hotel Group (under its brands NH Hotels and NH Collection).