Sidorme Hotels (Spain) - Nov 2007

unquote
01 November 2007

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Capital Empresarial, the initiative managed by N+1 Family Office (see page 09), bought a 68% stake in Sidorme Hotels. The operation, valued at €15m, involves replacement capital and funding for growth. The investors are providing what could be referred to as a second round of financing, which follows an initial round provided by the business’ founders. Capital Empresarial intends to develop the chain by increasing the number of hotels from four to 25 in four- to five-years’ time. The construction of six new hotels is planned for the coming months. Additionally, negotiations over site selection for a further 10 buildings are underway. According to the new backers, there is potential to sell the chain to another hotel operator seeking to expand its operations or to establish a presence in the low-budget accommodation sector. Alternatives would be the sale to an international sector player with a limited presence in Spain or a secondary buyout.

Company

Barcelona-based Sidorme Hotels was founded in 2004 as a chain geared toward low-budget accommodation. It currently possesses four operating hotels in Barcelona-Mollet, Girona-Figueres, Valencia-Paterna and Girona Salt with a new hotel in Barcelona-Granollers under construction and opening in June 2008.

People

The deal was lead by Borja Fernández on behalf of N+1 Capital Empresarial.

Advisers

Equity - Cuatrecasas, (Legal)Equity - Irea, Miguel Vazquez (Other Due Diligence)Equity - Proteyco, (Other Due Diligence)Vendor - Bufete B Buidos, (Legal)Vendor - KPMG, (Corporate Finance)

Sourced from: Southern Europe unquote" 70 (Jan 2008)