SINGAPORE (July 3): First Sponsor Group is acquiring a portfolio of heritage branded hotels in the Netherlands for €205 million ($323.3 million).

The deal to acquire a 95% stake Queens Bilderberg (Nederland) B.V. and 5% stake in EVENT Hotel Group was signed by First Sponsor’s 33% owned FSMC NL Property Group B.V.

QBN owns a portfolio of 17 hotels with 1,695 rooms and 13,661 sqm of conference space and is geographically spread across the Netherlands, including key gateway cities such as Amsterdam, Rotterdam and The Hague.

15 out of the 17 hotels are freehold in tenure.

Catering to both leisure and business travellers, First Sponsor says Bilderberg is a well-known brand in the Netherlands and has an excellent reputation for providing high-quality service, great meeting and conference facilities and high standard food offerings in its many restaurants and banqueting venues.

In addition, certain hotels have been identified to have redevelopment potential including increasing room count to optimise their earnings capacity.

The Bilderberg portfolio will be acquired at a historical 2016 net yield of 6.5% after transaction costs. It has undergone capital expenditure of €36 million in total for the last four years.

Neo Teck Pheng, Group Chief Executive Officer, says, “This envisaged acquisition will catapult the Group to become one of the largest hotel owners in the Netherlands. The Bilderberg Portfolio has an established profit track record from as far back as 2001 which would provide further diversification to our recurrent income base thereby strengthening our business resilience.”

Shares of First Sponsor closed 1 cent lower at $1.32.