Nov 20 (Reuters) - Family-owned Spanish hotel group Barcelo has proposed to buy rival NH Hotel Group in a multi-billion dollar merger that would create the largest Spanish hotel group, Expansión newspaper reported on Monday, citing sources.
Barcelo will own 60 percent of the merged group and it is expected to offer a 27 percent premium to NH’s shares under the proposed deal, according to the newspaper.
NH Hotel’s market capitalization was 1.75 billion euros ($2.06 billion) as of Friday.
After the deal, the combined entity is expected to be the largest hotel group in Spain, pushing Melia Hotels behind.
The new group would own 600 hotels with annual revenues of about 3.7 billion euros, the report added. ($1 = 0.8513 euros) (Reporting by Anita Kobylinska; Writing by Thyagaraju Adinarayan; Editing by Louise Heavens)