Minor Hotel Group has completed Portugal’s ‘largest ever’ hospitality deal with acquisition of Tivoli Hotels & Resorts.
Minor Hotel Group (MHG), owner and operator of hotels and resorts in 22 countries across Asia Pacific, the Middle East, Europe, South America, Africa and the Indian Ocean, today (2 February) completed the final stage of its acquisition of Tivoli Hotels & Resorts, a Portugal-based brand with 14 properties across Portugal and Brazil.
The acquisition, worth €294.2m (US$320.9m), marks MHG’s strategic entry into Europe and Latin America and, the group claims, represents the largest-ever hospitality transaction in Portugal. The deal comes on recent strong growth in Portugal’s tourism market.
Dillip Rajakarier, COO of Minor International and CEO of Minor Hotel Group, said: “We are excited to add Tivoli to Minor Hotel Group’s portfolio of hotel brands. With over 80 years of history, the Tivoli brand brings with it a rich heritage, a highly experienced team and a deeply loyal customer base.
“The Tivoli acquisition further cements MHG’s position as a world-class hotel operator, with a portfolio now extending to Europe and South America. Looking forward, we have already planned further investment into the Tivoli hotel assets and its operating and distribution infrastructure to realise the full potential of this strategic investment.”
The Tivoli business generated revenue of €121m (US$132m) in 2015 and its 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.
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 totalled more than US$550m in hotel projects in Southern and East Africa, Asia, Australia, South America and Europe.