The portfolio mostly comprises properties in the Economy and Midscale segments and spreads across six AccorHotels brands, representing an asset value of €504 million.
AccorHotels will sell to its new partner the 28 owned hotels and the business interest of all 85 hotels involved in the transaction for a total of €146 million. The 57 other hotel assets are currently owned by Foncière des Régions, Axa IM – Real Assets, and Invesco, and are covered by purchase agreements that include a substitution clause for the buyer. They will be acquired directly by the new entity for a total of €358 million.
The buyer is a newly created hotel investment company, which will be owned by Eurazeo (70%) and AccorHotels (30%). According to information released by the hotel group, the two partners may rapidly be joined by a third institutional investor. A budget of more than €100 million will be allocated for hotel renovations, and all of the hotels included in the transaction will maintain their AccorHotels brand via long-term franchise agreements. The new company will be up and running by the end of first-half 2016 and will become HotelServices' largest franchisee.
- AccorHotels posts solid growth in turnover for 3rd quarter 2015
- AccorHotels and Chinese operator Huazhu approve their "strategic alliance"
- AccorHotel launched an 8 year bond offering of €500 million
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