AccorInvest has signed a binding agreement to acquire 85.8% stake in hotel operator Orbis from Accor in a transaction valued at €1.06bn.
Orbis owns and operates 73 hotels and 14,000 rooms in six countries across Eastern Europe.
With the acquisition of Orbis, which will be implemented by way of a public tender offer, AccorInvest will be able to expand its European geographical footprint in dynamic markets.
The public tender offer is expected to be completed by the end of March next year.
AccorInvest will file the public tender offer with the Polish Financial Supervision Authority for all of the shares in Orbis’ share capital.
Furthermore, the company will be in a position to strengthen its portfolio in the economic and mid-range segments.
Following the acquisition of the hotel operator, the portfolio of AccorInvest will consist of more than 900 hotels and 135,000 rooms, for a total revenue of over €4bn.
AccorInvest CEO John Ozinga said: “We are thrilled to integrate Orbis which has a great portfolio of assets and a long-time expertise in real estate and lodging sectors across key markets such as Poland, Hungary and Czech Republic.
“This acquisition enables AccorInvest to reinforce its presence in Europe and confirm its position as the leading hotel owner & operator in Europe.”
Accor said in a statement: “Accor irrevocably committed to tender its 85.8% stake to the public tender offer, subject to antitrust clearance by the European Commission.”
The transaction is expected to close by the end of the first quarter of next year.
Last October, Accor acquired Orbis’ Management and Franchise business for €286m.