The hospitality management company U City has recently cinched a deal with several real estate vendors in Europe. The transaction, completed early June 2017, added 24 new hotels located across Europe to the hospitality firm’s portfolio, and included a hotel-management platform operating in nine countries across the globe. The acquisition cost total of Bt12.3 billion.

U City operates across Thailand, with several Bangkok and Sathorn hotel, and the globe is a subsidiary of BTS Group Holdings, one of the largest public companies in Thailand, and operator of the BTS Skytrain system. The company owns 35.64% of U City.

The hospitality firm managed to assume 100% ownership of Vienna International Hotel Management (Vienna House) via Vienna House Capital, U City’s Austrian subsidiary. This means that U City now supervises the 16 upmarket leisure and business hotels under operation of Vienna International Hotel Management. U City also acquired an additional eight hotels from WarimpexFinanz- und Beteiligungs.

According to U City, it financed the transaction with loans from financial institutions bolstered by existing cash.

The company expects their VH Capital to reach a consolidated revenue total of Bt4.3 billion/£115 million, with earnings (before interest, tax, amortisation and depreciation) of £26 million. U City’s forecast for the next four years include a growth of earnings sitting at 20% annually.

According to the firm’s Chief Executive, PiyapornPhanachet, the deal also included alongside the hotel assets a new management platform to operate the 24 new hotels across Europe, plus the 12 third-party hotels.

U City sees these new assets as the key for further company growth and expansion, which they say will be complimentary to the company’s growth in Thailand, which include a new Sathorn hotel in the Eastin Grand Sathorn Bangkok.

According to U City, the new hotel assets allow them to establish a hotel presence in emerging European tourist hotspots such as Germany, and France. As a result, they stand to gain much from the opportunities rife in the region, which the company believes will bring in value to its portfolio.

Figures from STR Global for the first quarter of 2017 show European hotels clocking in solid and consistent annual growth in key metrics, with occupancy rates, average daily rate and revenue per available room rising 3%, 2.% and 5.9%, respectively.