AccorHotels enters into negotiations for the sale of a portfolio of 85 hotels in Europe

The portfolio mostly comprises properties in the Economy and Midscale segments and spreads across six AccorHotels brands, representing an asset value of €504 million.

Pursuing the transformation of HotelInvest's hotel portfolio, AccorHotels entered into exclusive negotiations for the sale of 85 owned and leased hotels that it currently operates. The portfolio comprises one Pullman, 19 Novotel, 13 Mercure, 35 ibis, 3 ibis Styles and 14 ibis budget hotels. The majority of these hotels are located in France (61 addresses) or Spain (9 hotels), while the remainder are spread across Austria, Belgium, Germany, Italy, the Netherlands and Portugal.

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.

Source :  Hospitality On