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June 2, 2014

Accor to buy 97 hotels in Europe for €900m to boost real estate holdings

French hotel group Accor has agreed to acquire two real-estate portfolios comprising 97 hotels in Europe for nearly €900m ($1.23bn) via its HotelInvest business.

French hotel group Accor has agreed to acquire two real-estate portfolios comprising 97 hotels in Europe for nearly €900m ($1.23bn) via its HotelInvest business.

The first portfolio, representing 86 hotels and 11,286 rooms across Germany and the Netherlands, has been operated by Accor since 2007 under variable-rent leases.

The hotels have been operated by Accor under various brands – 29 under ibis, 31 under ibis budget, 17 under Mercure and nine under the Novotel brand. Accor will purchase the portfolio for €722m from real estate funds Moor Park Fund I and II.

The second portfolio, representing 11 hotels and 1,592 rooms in Switzerland, will be acquired by Accor from Axa Real Estate.

The second portfolio has been operated by Accor since 2008 under the following brands: ibis (five hotels), ibis budget (two hotels), Novotel (three hotels) and MGallery (one hotel).

The deal is expected to boost Accor’s 2014 earnings before interest and taxes (EBIT).

Accor chairman and CEO Sébastien Bazin said the transactions send a strong signal of the group’s capability to rapidly implement the strategy of restructuring the HotelInvest portfolio.

"They are fully aligned with our selective asset acquisition criteria: hotels located in key European cities and delivering excellent operating performance in our most profitable market segments," added Bazin.

Accor set up its HotelInvest unit to buy properties last year after reversing a previous plan to sell assets and focus on management.

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