FDL : Foncière des Régions strengthens its partnership with B&B Hôtels...

Paris, 21th February 2017

Partners since 2012, Foncière des Régions and B&B Hôtels are giving new impetus to their partnership at the beginning of 2017 by renewing 158 leases in France and continuing to develop the brand in Europe. More than ever, Foncière des Régions thus confirms its position as hotel real estate leader and key partner of operators in this sector.

Foncière des Régions and B&B Hôtels announced the renewal and firm 12-year extension of leases for 158 B&B hotels located in France and owned by Foncière des Régions. At the same time, B&B Hôtels launched an ambitious plan to modernise its establishments in order to offer its customers a more attractive and consistent experience.

Just like the renewal of Foncière des Régions' partnership with AccorHôtels, this operation reinforces the long-term aspect of the Company's partnership with B&B Hôtels and improves the quality of its portfolio through a revised, modernised offering.

To date, Foncière des Régions owns 236 B&B hotels, of which 5 are under development. Out of the total number of hotels, 78% are located in France, 20% are in Germany, and the rest are in Spain. In 2016, Foncière des Régions acquired 12 B&B hotels in France and in Spain, while continuing to support its partner's European development, particularly in Germany and Spain.

After this operation, the firm residual duration of leases of the Foncière des Régions' hotels portfolio is 11.5 years, compared to 10.4 years at the end of 2016.

"This operation fully reflects Foncière des Régions' strategy in the hotel sector. We are strengthening the long-term aspect of our partnerships and proving our capacity to support operators in their transformation and the modernising of their concepts. By contributing to the renewal of the hotel offering, Foncière des Régions once again asserts its position as European hotel real estate leader", states Dominique Ozanne, CEO Hotels at Foncière des Régions.

"B&B Hôtels' pioneering spirit is once again in motion with this vast renovation program which demonstrates our hotel chain's ability to rethink its strategy for the benefit of its customers. Through the renewal of our partnership with Foncière des Régions and the support of our main shareholder PAI Partners, B&B Hôtels will modernise 160 hotels over a 3-year period, with the ambition of having the most attractive stock of economy hotels in France", emphasises Vincent Quandalle, CEO B&B Hôtels, France.

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As a key player in real estate, Foncière des Régions has built its growth and its portfolio on the key and characteristic value of partnership. With a total portfolio valued at €19Bn (€12Bn in group share), located in the high-growth markets of France, Germany and Italy, Foncière des Régions is now the recognised partner of companies and territories which it supports with its two-fold real estate strategy: adding value to existing urban property and designing buildings for the future.

Foncière des Régions mainly works alongside Key Accounts (Orange, Suez Environnement, EDF, Dassault Systèmes, Thales, Eiffage, etc) in the Offices market as well as being a pioneering and astute operator in the two other profitable sectors of the Residential market in Germany and Hotels in Europe.

Foncière des Régions shares are listed in the Euronext Paris A compartment (FR0000064578 - FDR), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100 indices, in the "EPRA" and "GPR 250" benchmark European real estate indices, and in the FTSE4 Good, DJSI World, Euronext Vigeo (World 120, Eurozone 120, Europe 120 et France 20), Oekom, Ethibel and Gaïa ethical indices.

Foncière des Régions is rated BBB/Stable by Standard and Poor's. www.en.foncieredesregions.fr

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