AccorHotels restructures a 31-hotel portfolio in Australia
The French hotel group announced the signing of an agreement with the subsidiary of ADIA (Abu Dhabi Investment Authority). The goal of this operation is to rebuild a portfolio of 31 Australian properties.
This agreement is for a portfolio of 4,097 rooms acquired by ADIA in 2013 and currently operated by AccorHotels. This restructuring means converting 15 triple leases into 50-year management contracts and the extension to 50 years of a management contract for an additional hotel. AccorHotels via HotelInvest - one of the two divisions of the group that brings real estate assets and and signs management contracts with HotelServices - will purchase the 15 remaining properties under the ibis and ibis budget brands for 137 millions euros. This operation impacts units that are located in a wide variety of destinations (Sidney, Canberra, New South Wales, State of Victoria, Western Australia and Queensland). They will be operated under the Pullman, Novotel, Mercure, ibis, ibis Styles and ibis Budget brands.
John Ozinga, COO HotelInvest, remarked: "“This deal is in line with our stated strategy to optimize cash flow generation, reduce earnings volatility and restructure lease contracts into owned and managed hotels. The acquisition of the economy hotels in key locations is a signal of our continued focus on supporting the Group’s growth strategy by holding a selective portfolio of profitable hotel property assets.”
For this operation, AccorHotels has strengthened its presence in Oceania where it already ranks fifth among hotel groups worldwide; this operator has 680 hotels for 130,798 rooms in Asia/Oceania. As of January 1, 2016, AccorHotels was the sixth largest hotel group worldwide with 3,995 properties for a total of 554,508 rooms, according to data published by Hospitality ON.