AccorHotels has agreed to sell a 55% stake in its European real estate hotels business to five investors.
The deal values the 891 hotels at €8bn (£7bn). The portfolio is spread across 27 countries, predominantly in Europe, and are operated by the company’s economy and midscale brands.
Of the total, 324 are owned and 567 are operated under fixed or variable-rent leases. The operational contracts with Accor are for 50 years with a 15-year renewal option for its luxury and upscale hotels and 30 years on average with a 10-year renewal option for hotels in the midscale and economy markets.
The remainder are subject to management contracts that are “in line with market practices”.
The deal is due to complete in the second quarter.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “Following the separation of AccorInvest into a stand-alone legal entity last summer, we are now gathering a round-table of leading investors, on the basis of a valuation that fully reflects its global leadership and the quality of its assets, while building a long-term relationship between AccorHotels and AccorInvest.
“These elements were essential to make this operation a success for all stakeholders: teams, partners, as well as present and future shareholders of both entities. The entry of new shareholders and the deconsolidation of AccorInvest will provide AccorHotels with substantial leeway to enhance our dynamic growth and innovation strategy and create value for shareholders.
“For its part, AccorInvest will take advantage of its new powerful shareholders’ support, as well as a strengthened financial structure, to execute its roadmap and continue to reinforce its portfolio of assets.”
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