Home » Corporate » Currently Reading:

Accor deploys HotelInvest’s strategy with the purchase of 97 hotels in Europe

May 28, 2014 Corporate No Comments Email Email

Accor announced today that its HotelInvest business has agreed to purchase two real-estate portfolios representing 86 and 11 hotels respectively (12,838 rooms) for a total consideration of about €900 million.

“These transactions send a strong signal of our capability to rapidly implement the strategy of restructuring the HotelInvest portfolio,” said Sébastien Bazin, Chairman and Chief Executive Officer of Accor. “They are fully aligned with our selective asset acquisition criteria: hotels located in key European cities and delivering excellent operating performance in our most profitable market segments”.unnamed

The first portfolio, representing 86 hotels and 11,286 rooms across Germany (67 hotels) and the Netherlands (19 hotels) has been operated by Accor since 2007 under variable-rent leases and the following brands: ibis (29 hotels), ibis budget (31 hotels), Mercure (17 hotels) and Novotel (9 hotels). The total consideration for this acquisition is €722 million. The sellers are two funds, Moor Park Fund I and II, advised by Moor Park Capital Partners, a pan-European real estate private equity investment advisory business.

Besides, Accor has entered into exclusive negotiations with Axa Real Estate for a second portfolio representing 11 hotels and 1,592 rooms in Switzerland. This portfolio has been operated by Accor since 2008 under variable-rent leases and the following brands: ibis (5 hotels), ibis budget (2 hotels), Novotel (3 hotels) and MGallery (1 hotel).

Both acquisitions will be accretive to Accor’s EBIT in 2014. Based on pro forma 2013 figures, the relative contribution of owned hotels to HotelInvest’s net operating income (1) will increase by around fourteen points to 68%. One of the key objectives for HotelInvest, the leading hotel investor in Europe, is to raise this proportion to more than 75% over the medium term.

Completion of the acquisitions is subject to the usual conditions for this type of transaction, as well as to regulatory approval.

(1) Net operating income = EBITDA less maintenance capital expenditure

Nearly 45 years, Accor has constantly reinvented its businesses to keep pace with the world around it, with the goal of providing innovative, high-quality products.

Thanks to our powerful, highly respected brands, our employees forge lasting interpersonal relationships and deploy their unique skills to develop and deliver solutions that create wellness.

For nearly 45 years, across all brands and regions, Accor’s five core values of innovationa spirit of conquestperformancetrust and respect have been shared and expressed every day by its160,000 employees in Accor brand hotels worldwide. Managers leverage these values to provide support for team members as part of the Group’s ongoing transformation and development.

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS

GLOBAL TRAVEL MEDIA VIDEOS