If the expected Pestana deal goes through, the largest hotel chain in the country would keep the ‘Tivoli’ brand in some units, according to Dionisio Pestana, president of the Pestana Group
Espírito Santo Group, through its insolvent Rioforte subsidiary, said today that its 14 Tivoli hotels are all up for grabs.
Asked by journalists in Lisbon, Dionisio Pestana said that the proposed purchase would be in partnership with American and British investment funds, with the Pestana Group managing the hotels.
"The funders have asked us to evaluate the Tivoli hotels," admitted Pestana. The purchase of Tivoli would "complement Pestana Hotels."
Dionisio Pestana said the Tivoli brand would be maintained, "In principle we would keep the brand, but not in all units. This is one thing to look at. It is a good brand and it is not worth throwing away a brand after so many years."
The purchase of Tivoli would be an opportunity to grow the Pestana Group in Portugal "that otherwise would not be possible."
Earlier this week the financial newspaper Expansíon reported that a consortium composed of the American fund Pimco, the Spanish hotel chain Iberostar and the Swiss company Helvetia had made an offer of €333 million to buy the Tivoli hotel chain.
The news was not confirmed by Espírito Santo Group, but it does admit that it is selling its non-banking businesses.
Spanish media reported that in the race for Tivoli is Thai group, the investment fund Cerberus based in New York and a Portuguese investor.
The Espírito Santo Group started buying hotels in the 1990s when it purchased three hotels in Lagos, Carvoeiro and at Vilamoura marina. It then expanded the network to Lisbon, Sintra and Coimbra, and then overseas.
The Pestana Group manages 93 hotel units in Portugal and abroad and has run the Pestana Pousadas de Portugal chain from 2003.
