AccorHotels finally sells 57.8% of the capital of its real estate business for 4,600 million

Complete the acquisition of the Australian group Mantra for 830 million

AccorHotels has completed the sale of 57.8% of the capital of AccorInvest, its real estate business, to a group of investors for 4,600 million euros, a cash that exceeds by 200 million euros the amount announced in February, in line with the largest percentage finally sold.

In a statement, the French group has confirmed that among the investors investors include the Public Investment Fund (PIF) of Saudi Arabia, the sovereign funds GIC of Singapore, as well as Credit Agricole Assurances, Colony NorthStar and Amundi.

In parallel, it has completed the acquisition of Mantra Group for 1,300 million Australian dollars (830 million euros), with which AccorHotels is its sole shareholder.

At the end of February the group advanced its intention to sell a majority of the capital, 55%, of its investment arm, an operation that was already on the table years ago, and which it expected to finish in the second quarter of the year. Last summer, he separated the real estate business from his investment arm, AccorInvest, as an independent company.

After the transaction, AccorHotels maintains 42.2% of the capital of AccorInvest, which will no longer be included in the group’s consolidated financial statements as of June 1, 2018. As part of the transaction, AccorHotels and AccorInvest will maintain its relationship with the collaboration.

The agreement contemplates that the hotels continue to be operated by the chain under a long-term agreement of 50 years; including an option to renew the management contract for 15 years in luxury establishments and average 30 years (with 10-year renewal) for the mid-range and low-end segments, he details.

CULMINATES A FIVE-YEAR PROCESS

“After completing the sale of nearly 58% of AccorInvest’s capital, we have successfully completed the transformation process started five years ago,” said the president and CEO of the French hotel group, Sébastien Bazin.

With this agreement, the group seeks to further accelerate the development of AccorHotels by focusing on strengthening its portfolio of brands and its leadership position in key markets and in the search for innovative services for hotel owners.

AccorHotels, based in Paris, has more than 4,300 hotels in 100 countries, with brands ranging from luxury like Sofitel to the economic brand Ibis.