"The end of a difficult period of almost two years," according to Filipe Santiago after the completion of the sale of Tivoli hotels to Thai-owned Minor Hotel Group.
The €294 million deal has dragged on for 18 months due to a Special Revitalisation Process, the seizure of assets and an unwanted legal claim by Montepio bank.
The Tivoli chain now is wholly owned by the Minor Hotel Group with 14 Tivoli hotels (two of them in Brazil) being added to a network of over one hundred hotels in 22 countries.
The purchase of Tivoli is the largest ever deal in Portugal’s hotel sector.
Tivoli Hotels & Resorts' 12 hotels in Portugal and two in Brazil, was put up for sale in 2014 by Rioforte Investments SA, part of the Espírito Santo Group, before a court in Luxembourg declared Rioforte was bankrupt after it failed to meet debt payments.
The new Thai owners also have promised an additional investment of €50 million to refurbish selected Tivoli hotels in Portugal.
Dillip Rajakarier, the CEO of Minor Hotels Group said that they had been tracking Tivoli since 2013, "We were quite insistent because we feel that the brand has a lot of value."
The deal marks the entrance of the Minor Hotel Group to Europe and South America. The management now want to "take the Tivoli brand outside Portugal" while strengthening the Tivoli brand in the Portuguese home market.
"In five years, the size of the Tivoli brand will be very different," said Rajakarier.
The Minister of Economy commented of the Thai company’s board, "I want to thank their resilience and their choice to invest in Portugal." Manuel Caldeira Cabral added that this deal had been a "long and complicated process."
The minister said he wanted to simplify life for those who want to work and invest in Portugal by helping to simplifying licensing procedures, capitalisation and funding mechanisms for businesses and reducing costs.
"The State Budget 2016 raises yield and reduces the tax burden. This increases the confidence of investors and of the Portuguese."
Timeline-
- January 2015: acquisition of Tivoli operations in Brazil and four properties in Portugal for €168 million (Tivoli Lisboa, the Tivoli Marina Vilamoura, the Tivoli Marina Portimão and the Tivoli Carvoeiro.) Tivoli Hotels & Resorts requested a Special Revitalisation Process to keep creditors at bay.
- June 2015: a proposal of €82.5 million for control of the Tivoli chain and a commitment to take on liabilities to €60 million.
- October 2015: acquisition of Tivoli Oriente for €38.5 million.
- December 2015: the lifting of the frozen assets of Tivoli Hotels & Resorts by a Portuguese court.
- February 2016: the acquisition of the remaining seven hotels in Portugal - Tivoli Jardim in Lisbon, Tivoli Sintra, Tivoli Palácio de Seteais, Tivoli Lagos Beach Clube & Golf, Tivoli Victoria Vilamoura, The Residences at Victoria Clube de Golfe and Tivoli Coimbra.
