Accor is buying back 86 hotels in Germany and the Netherlands, and is advanced talks to acquire 11 more in Switzerland.
Accor is buying back 86 hotels in Germany and the Netherlands, and is advanced talks to acquire 11 more in Switzerland.
The French-based international hotel group announced onTuesday that its HotelInvest business has agreed to purchase the hotels in two real estate portfolios for a total of €900 mln.
The total consideration for this acquisition is €722 mln. 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.
In the largest portfolio deal, Accor is buying 86 hotels offering a total of 11,286 rooms across Germany (67 properties) and the Netherlands (19). The assets have been operated by Accor since 2007 with variable rent leases under the Ibis, Ibis Budget, Mercure, and Novetel brands.
In addition, 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.
'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. 'The assets 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.'
Both acquisitions will be accretive to Accor’s EBIT in 2014, the company said.
The deal is expected to lift the contribution of owned hotels to HotelInvest’s net operating income by around 14% to 68%. The company plans to raise this proportion to more than 75% over the medium term.
