The purchase of the tower ‘Sequana’ will mean an annual saving of 20 million in rent
AccorHotels has completed the acquisition of the ‘Sequana’ tower that houses its headquarters for 363 million euros and expects to double its operating gross result (Ebitda) for the year 2022, to 1,200 million euros.
The company has reaffirmed its long-term objectives and its strategy to transform the group with a “richer” asset model, made up of iconic brands and positioned in key markets, and with which it wants to cover all market niches.
The French hotel group closed 2017 with a profit of 441 million euros in 2017, which is 66.4% more than in the previous year, in a year in which it sold 55% of its real estate business for 4,400 million; increased its turnover by 5% and achieved an Ebitda of 626 million euros, 23.6% more.
AccorHotels, which has been developing an organic growth highlighted in recent months with several acquisitions and yesterday celebrated the Capital Markets Day, has assured that the company now has more strengths for the creation of value.
Specifically, the company will focus its strategy on two initiatives: the purchase offer to take over 47% of the capital that does not yet control the Polish hotel operator Orbis, a leader in Central and Eastern Europe, in order to replicate the policy of asset management that the group has implemented for years and provide added value to its new economic model, especially in Europe, while optimizing costs.
In this regard, he added that his revenues reflect a solid growth in the main business areas and by markets, supported by the expansion of the scale of brands with which he operates, as well as an improvement in his operating margins thanks to the strict control of his general costs
“The improvement of operating performance, combined with stable capex (investments in capital goods), will lead to a sharp increase in recurring cash flows and, therefore, the dividend per share of the group,” he says. The group maintained the dividend in 2017 at 1.05 euros per share.
A GROUP “MORE AGILE AND MORE PROFITABLE”
“AccorHotels has undergone a great transformation in recent years, evidenced by numerous brand acquisitions and complementary commercial activities, the strengthening of our digital platforms and the change to an asset light model including the sale of the majority stake in AccorInvest”, said the president and CEO of the group, Sebastian Bazin.
Bazin has argued that the group’s objectives are “ambitious but achievable” and that today the company is “more agile, more profitable and more global, with a well-balanced portfolio of brands and unique assets in the industry”. For the manager, all this combined with a “rigorous management” will allow the company to generate sustainable value for its shareholders, customers and employees.
On the other hand, AccorHotels has completed the acquisition of the tower ‘Sequana’, which has hosted its headquarters since 2016 in IssyLes-Moulineaux in the vicinity of Paris for an amount of 363 million euros, under the lease agreement signed in 2015 , which included a purchase option.
Currently, the building is valued at more than 500 million euros and the transaction has been financed with a loan of 300 million euros for eight years, with a coupon of 1.8% per annum. With this operation, the French hotel group accounts for 20 million euros per year in rental savings.