April 25 (Bloomberg) -- Oaktree Capital Group LLC and Cerberus Capital Management LP are among bidders for NH Hoteles SA’s real-estate unit Sotogrande SA as the Spanish hotelier reorganizes its assets to cut costs and debt, people familiar with the matter said.
The investment firms are handing in offers this month for Sotogrande, which may fetch more than 200 million euros ($277 million), the people said, asking not to be identified because the process is private. Binding offers are expected at the beginning of June, one of them said. Jefferies Group LLC is helping NH Hoteles with the sale process of its 98 percent stake in Sotogrande, the people said.
NH Hoteles, which operates about 400 hotels in 28 countries in Europe, the Americas and Africa, is seeking ways to cut costs while selling some hotels that no longer fit with its strategy, the company said in February. The hotelier plans to generate 125 million euros from hotel disposals in 2014.
The Madrid-based company is considering ways to improve its financial situation and holding talks with investors about potential asset sales, a spokesman said, declining to comment on potential bidders. Representatives at Oaktree, Cerberus and Jefferies declined to comment.
Sotogrande’s assets include a luxury property development in the southern province of Cadiz with golf courses, a center to play polo and a bay for boats and yachts. It also has assets in Mexico, the Dominican Republic and Italy.
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