26 March 2016 – by Amber Rolt
The largest hotel chain in the Netherlands, Fletcher Hotel Group, is exploring options for its €350m (£274m) hotel business, including a possible sale.
The Dutch hospitality firm has been in discussions with JLL regarding the future of the 3,200-bedroom business.
Fletcher Hotel Group owns 69 three- and four-star resorts across the Netherlands and has built up its portfolio since its 1998 inception by acquiring and developing assets.
A sale of the firm would likely include the operational business as well as its assets. The portfolio is a mixture of leased, owned and franchised hotels in secondary locations in Dutch cities including Amsterdam, Utrecht and Hertogenbosch.
In 2010, Rabo Private Equity, the private equity arm of Dutch bank Rabobank Group, acquired a 10% stake in the business to help fund its growth.
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Chief executive Rob Hermans has stated his intention to expand the business outside its home market and into other European countries.
The Netherlands’ investment market has attracted large private equity capital over the past year, with investors looking to take advantage of higher yields unavailable in most other parts of Europe. At the end of 2015 Tristan Capital Partners acquired 15 shopping centres from Amsterdam-based insurer Delta Lloyd NV for €273m.
PwC has projected a 1.6% GDP growth for the Netherlands in 2016, as well as RevPAR growth of 3.6% to €98m in Amsterdam’s hospitality sector – the best figure since 2007.