Real estate company Covivio has joined forces with peer AccorInvest to streamline their ownership of hotel properties.
This agreement, finalized through a memorandum of understanding, is expected to close by the end of 2024.
Covivio Hotels will acquire 24 hotel properties from AccorInvest. In exchange, Covivio Hotels will transfer ownership of 10 hotels to AccorInvest.
Covivio Hotels, along with its partners, will also acquire the operational rights to 19 businesses within two joint ventures (with Crédit Agricole Assurance and CDC). This acquisition comes with the transfer of the operating rights for six additional hotels to AccorInvest.
Overall, the value of the properties and businesses being exchanged is roughly equivalent, at €393 mln. Based on 2023 figures, the assets transferred to AccorInvest represent annual rental income of €11 mln, while the operating companies acquired by Covivio Hotels generate EBITDA of around €31 mln.
This agreement allows both companies to optimize their hotel portfolios.
Covivio, through its subsidiary Covivio Hotels, owns 54 hotels that are let to AccorInvest under long-term variable-rent leases based on revenues. AccorInvest owns and operates the operating companies of these hotels and has signed long-term management contracts with the Accor Group.
The deal enables Covivio Hotels to acquire operating companies in major tourist areas with considerable potential for value creation through repositioning and management optimization. Some of these hotels will continue to operate under Accor brands (under management or franchise agreements), while others will be rebranded.
Upon completion, Covivio Hotels and its partners will have consolidated ownership of 43 hotels and AccorInvest 16.
