Accorhotels has announced it has signed agreements for the potential majority sale of its real estate arm, Accorinvest.
The group has agreed to sell 55 per cent of Accorinvest to a group of international investors for €4.4 billion. The portfolio encompasses 891 hotels, with nearly 30,000 employees operating in 27 countries.
Under the agreement, Accorhotels would continue to operate the properties involved in the sale under ‘very-long-term’ contracts of 50 years for luxury hotels (including a 15-year renewal option) and an average of 30 years for midscale and economy hotels (with a ten-year renewal option).
The purchase is subject to antitrust and regulatory approvals and is expected to be finalised in the second quarter of 2018.
Sebastien Bazin, chairman and CEO of Accorhotels, commented: “These agreements represent a key milestone for the group. Following the separation of Accorinvest into a stand-alone legal entity last summer, we are now gathering a round-table of leading investors, on the basis of a valuation that fully reflects its global leadership and the quality of its assets, while building a long-term relationship between Accorhotels and Accorinvest.
“The entry of new shareholders and the deconsolidation of Accorinvest will provide Accorhotels with substantial leeway to enhance our dynamic growth and innovation strategy and create value for shareholders.
“For its part, Accorinvest will take advantage of its new powerful shareholders’ support, as well as a strengthened financial structure to execute its roadmap and continue to reinforce its portfolio of assets.”