CPI PROPERTY GROUP Announces Joint Venture and Stake Sale in Hotel Portfolio

CPI PROPERTY GROUP, known as CPIPG, disclosed the sale of a 50% stake in its subsidiary that owns a portfolio of eight hotels in the Czech Republic. This transaction coincides with the establishment of a joint venture agreement with Best Hotel Properties (BHP). The portfolio in question includes notable properties such as Clarion Congress Hotel Prague and Comfort Hotel Prague City East, operated by CPI Hotels a.s. The gross value of this deal is estimated at about €347 million, placing the 50% stake's worth at approximately €173 million.

The joint venture signifies a strategic collaboration between CPIPG and BHP, aimed at leveraging both parties' strengths in hotel management and operations. BHP, a reputable entity in the realm of premium and luxury hotels primarily in the Central and Eastern European (CEE) region, has been expanding since 2009. CPIPG's CEO, David Greenbaum, expressed enthusiasm about the partnership with BHP, highlighting the anticipated synergy in operational expertise to enhance their hotel portfolio.

Proceeds from this transaction are earmarked for debt repayment by CPIPG, as part of its financial strategy. The move underscores CPIPG’s commitment to optimizing its asset portfolio and bolstering its position in the market through strategic partnerships.