Hotel group Accor has signed a memorandum of understanding to sell 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate for EUR 863 mln, including a EUR 43 mln renovation programme.
Hotel group Accor has signed a memorandum of understanding to sell 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate for EUR 863 mln, including a EUR 43 mln renovation programme.
The transaction, signalled by PropertyEU in mid-February, includes a total of 12,000 rooms of Novotel, Mercure, Ibis and Etap hotel sites. The hotel operator will continue to run the properties under 12-year variable-rent leases renewable up to six times, Accor said in a press release on Monday. Under the agreement, Accor and Moor Park are to start a long-term development partnership that will enable the hotel operator to step up its expansion programme in Germany and the Netherlands. Moor Park RE mainly focuses on the German real estate market, where it owns more than 70 Praktiker shops.
Accor is consolidating its real estate management strategy to reduce earnings volatility and focus on its core hotels operations business. The group has started selling its property assets while retaining the management contract in France, Belgium and the UK. Now a similar process is taking place in Germany and the Netherlands. The transaction will enable Accor to reduce its adjusted net debt by EUR 612 mln, of which EUR 215 mln will be added to its cash reserves, the company said.