32 Accor properties in France and in Belgium, with one clear priority: the location. Covivio is positioning itself to manage the properties, a good way to maximise the value chain and thus its ROE.
The €176 million acquisition through the subsidiary Covivio Hotels concerns a portfolio of 32 Accor group hotels. Estimated at €550 million they are located throughout France and Belgium, including 30 hotels in France and 2 in Belgium. More specifically, 43% of these establishments are located within Paris, 24% in Greater Paris and 33% in the heart of major French and Belgian cities. The brands concerned are Mercure and Novotel for the mid-range segment, and ibis and ibis Budget for the economy segment. The leases for these facilities have a residual term of 6.5 years.
"We think that these assets are good investments particularly thanks to the 29 million euros renovation program planned by AccorInvest. These properties are positioned in prime locations with rents of 4,700 € per room which is very competitive." Dominique Ozanne Deputy CEO Covivio.
Covivio owns one third of the capital in partnership with the Caisse des Dépôts and Société Générale Assurances which also owns capital in the real estate company. The deal signed with AccorInvest continues a collaboration that began in 2005/2006, the date of the first signatures.
"These are ideal conditions with long-standing partners to achieve optimal return on assets once the work is completed. We had already signed this type of 100% variable lease, and it proved very profitable," adds Dominique Ozanne.
Covivio is thus now positioned in major European destinations. After selling some of the B&B properties which it owned in 2018 and keeping only those in prime locations, it now has a portfolio of assets in the heart of high profit destinations.
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