Covivio Hotels is looking to raise €250 million from shareholders in a bid to capitalise on opportunities in the hotel market.
The 43.5%-owned subsidiary of REIT Covivio, has been buoyed by the acceleration of the vaccine programme in Europe and the rollback of lockdown restrictions in countries like the United Kingdom. It is hoping for a similar bounce back in occupancy rates to what has been seen in the United States and China.
The funds will be used to strengthen its balance sheet, while also giving it the ability to seize any investment opportunities that may arise.
The capital increase will take place in the next few weeks, subject to market conditions.
"This capital increase supported by all shareholders demonstrates the confidence in the company's ability to benefit from the recovery and continue its development,” said Christophe Kullmann,” chairman of the Supervisory Board of Covivio Hotels and CEO of Covivio.
Covivio Hotels recently lost its CEO and his deputy who have left the business to pursue another project. Tugdual Millet, current chief financial officer of Covivio, will takeover as CEO of the hotels division later this year.