GIC, Saudi's PIF acquire majority stake in AccorInvest

Singapore’s GIC and Saudi Arabia’s Public Investment Fund have led a consortium of institutional investors to buy a majority stake in AccorInvest for €4.4bn.

As part of the agreement, the global hotel chain would initially sell a 55% stake to GIC, PIF, Credit Agricole Assurances, Colony NorthStar and Amundi, and other investors.

AccorInvest’s hotel real estate portfolio is currently around 891 hotels. The majority of its hotels are located in Europe.

Announcing the sale agreement, Sébastien Bazin, chairman and chief executive of AccorHotels, said: “The entry of new shareholders and the deconsolidation of AccorInvest will provide AccorHotels with substantial leeway to enhance its dynamic growth and innovation strategy and create value for shareholders.”

Bazin said the group undertook restructuring last summer to separate out AccorInvest into a stand-alone legal entity. The new structure had been created to allow entry to new shareholders.

AccorInvest will take advantage of its new shareholders’ support, as well as a strengthened financial structure, to execute its roadmap and continue to reinforce its portfolio of assets, he said.

AccorHotels will operate the AccorInvest hotels under a 50-year contract for luxury and upscale hotels and a 30-year contract for its midscale and economy hotels.

GIC said in a statement that the investment will enable GIC to gain exposure to AccorInvest’s large and well-diversified portfolio, with resilient cash flows and attractive opportunities for value creation.

The sale is subject to the approval of AccorHotels shareholders and requires certain antitrust and regulatory approvals.  

The transaction is expected to be finalised in the second quarter of 2018.

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