As part of an ambitious asset management plan underway since 2021, AccorInvest announces that it has signed a memorandum of understanding for exclusive negotiations with Covivio Hotels for an asset swap transaction.
Through its transformation plan, AccorInvest aims to consolidate its portfolio of mainly owned assets in the economy and mid-range segments in Europe, in order to increase its quality and value.
In the space of 2 years, the Group has already managed to dispose of €500 million worth of assets. It is now on the right track, with plans to dispose of €1.7 billion of assets by 2025.
To achieve these ambitious targets, and thereby strengthen its presence in terms of properties and funds, the group has entered into negotiations with Covivio Hotels to divest certain hotels while acquiring new ones.
AccorInvest will acquire 16 hotel properties it already owns from Covivio and its partners, while it will sell them 43 hotel properties they already own.
Once the transaction is completed, its hotel portfolio will be further strengthened, with the equivalent of €390 million in additional property value. The proportion of freehold assets in its portfolio will rise to 78% of GAV, compared with 70% today. Lastly, the Group will considerably improve its operating margin by reducing its rental costs by €22.5 million.
Furthermore, this transaction comes against a backdrop of solid operating performance, with the Group having returned to, or even exceeded, its pre-crisis levels. With sales of €3.2 billion in the first 9 months of 2023, AccorInvest is up 28% on 2022 and 14% on 2019 on a like-for-like basis.
The proposed asset swap with Covivio Hotels, which would enable AccorInvest to consolidate 16 hotels, is a perfect illustration of our strategy of combining property value and operating performance. It is another step in our ambitious plan to transform our portfolio, against a backdrop of very good operating results.
Gilles Clavié, CEO, AccorInvest
Tugdual Millet, CEO of Covivio Hotels, will also be present at the Hospitality Asset Forum on Thursday 9 November to discuss the subject in greater detail. During his speech, he will be talking in greater depth about his strategy as an investor.