U City Public has officially acquired a European portfolio of 24 hotels and a hotel management platform that operates in 9 countries. The deal was 1st announced earlier this year and was finally closed seeing the company pay THB 12.3 billion for the properties.
“This is a landmark transaction for U City as it continues to expand its portfolio of income generating assets overseas. Overseas business now contributes the majority of U City’s revenue going forward. We believe that these assets, driven by Vienna House’s accomplished management team will provide a sustained platform for growth and enhanced shareholder return,” says Daniel Ross, Director of U City.
U City received Vienna International Hotel Management which has a portfolio of 16 upscale leisure and business hotels as well as 8 hotels from Austrian and Polish-listed company Warimpex Finanz- und Beteiligungs as part of the transaction. The deal was completed with new loans from financial institutions and existing cash it already had.
“In addition to the hotel assets, the deal includes a management platform, which operates these 24 hotels plus a further 12 third-party hotels. The management platform and brands are envisioned as a growth engine for further expansion that is complementary to U City’s hotel properties in Thailand, which currently includes Avani Khon Kaen Hotel and Convention Centre, Anantara Chiang Mai Resort and Spa, and Eastin Grand Sathorn Bangkok,” says Piyaporn Phanachet, CEO of U City, in a press release.
The acquisition will allow U City to increase its hotel footprint in both established and emerging European tourist destinations including Germany, Poland, France and the Czech Republic. It also highlights the companies desire to expand both domestically and internationally.
U City purchased a London office building in London and is also under contract to buy a second office block in the city. It will start construction on a pair of mixed-use developments in Thailand during the next 2 years.
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