Topic: Hotel For Sale in New York (EEUU)
[b]NH Hoteles offers for sale its only property in the U.S., valued at 120 million[/b]
NH is selling its only hotel in the U.S. in a process of renegotiating its debt of more than 962 million euros that includes a plan of divestiture under 300 million euros and a new payment schedule for the new funding up to five years.
The Jolly Madison Tower, located between 5th Avenue and Central Park in New York, is worth about 120 million euros, an income that will come very well to the chain headed Mariano Pérez Claver to meet part of the first maturity of 195 million euro syndicated loan that banks delayed until late March.
With a smaller debt and therefore some covenants below 4.7 times debt / EBITDA present, the chain will have it easier to renegotiate the terms and sign the syndicated loan financing of EUR 650 million signed in 2007, which currently must be 455 million.
Since 2007
The multinational hotel, which was bought with this hotel when in 2007 the Italian chain Jolly, the establishment is not considered strategic for the group. The hotel's 254 rooms, needs a strong investment for reform to adapt to the standards of the NH (Jolly still, but is marketed in the commercial network of the chain) and the multinational does not have the box for too many joys . It has also adopted a low capital intensive that intends to take certain investment commitments.
In addition, the Jolly Hotel Madison Towers the only company in the U.S. has is not a priority market for the chain headed Pérez Claver, who has decided to focus its expansion in Latin America (Brazil, Colombia).
Still, although NH plans is to continue growing in the U.S., the sale of the property would not have to mean "necessarily" out of the country. "The sale of the hotel should not necessarily assume the output of NH, may stay the same to the management of that establishment, which in this case assumed investment conversion to NH by a third party brand," company sources say hotel .
According to sources consulted by this newspaper, is very difficult to get a group NH investor and manager to keep the Spanish company that is not known in the U.S. market. Meanwhile, other sources say the network has received a lot of offers and that some even contemplated the possibility of leaving as manager in NH, even if a reduction in the price of the sale.
Source: The Economist. March 5, 2012