Foncière des Régions has signed a partnership agreement with B&B for the financing of nine new hotels in Germany over the next three years.

Foncière des Régions has signed a partnership agreement with B&B for the financing of nine new hotels in Germany over the next three years.

The investment will amount to around €50 mln and builds on the partnership that was initiated between the two groups in 2010.

B&B intends to pursue its expansion in Germany beyond its existing base of 61 hotels established in the country. In the coming three years, the company will develop a further nine B&B hotels, representing a total of 900 rooms located in the centres of major German cities. The new hotels, set to open between 2014 and 2016, will be let on 20-year leases with a net triple base rent.

FdR has supported B&B's expansion since 2010, when it bought a portfolio of B&B hotels with 1,980 rooms in France and Germany. A year later, the Paris-listed property giant bought a further 18 B&B assets in Germany from the hospitality group.

Also in 2012, Foncière des Régions' hospitality arm Foncière des Murs teamed up with Crédit Agricole Assurances and Assurances du Crédit Mutuel to acquire a portfolio of 165 B&B hotels in France for €508 mln.