French listed property group Covivio has completed a property swap with AccorInvest for a deal volume of around €800 mln.
Under the transaction, which was first initiated at the end of 2023, Covivio has taken full ownership of 43 hotels located in France, Belgium and Germany with a value of €393 mln, while selling 16 hotels to AccorInvest in the same countries and with the same value.
The deal with AccorInvest will enable Covivio to strengthen its hotel presence in areas with strong tourist appeal and significant potential for value creation through repositioning and management optimisation, the company said in a statement.
Of the 43 hotels acquired by Covivio, 14 will be managed directly by Covivio’s hotel management platform, WiZiU. In order to accelerate the planned repositioning plan, Covivio will work with two other players, Atypio and Sohoma, which will operate 12 and 10 establishments respectively, via management contracts. Five hotels will continue to be operated by Accor.
Covivio plans to launch around 10 renovation programmes from 2025, including the Ibis Montmartre, the Mercure hotels in Boulogne, Nice and Lyon, and the Novotel Sèvres, capitalising on the recent repositioning of the Novotel in Bruges, for a total investment of €100 mln.
The Covivio Group was advised in this transaction by Natixis Partner, Etude Cheuvreux, De Pardieu Brocas Maffei, Loyens & Loeff (Belgium), J+S (Germany) and PWC.
