Accor will acquire the South American hotel portfolio of Mexican hotel company Grupo Posadas for $275m.
The transaction, which is expected to close by the end of 2012, is in accordance with the external growth strategy of the group, and includes 2,600 rooms (15 hotels) and a pipeline of 2,000 rooms (14 hotels).
According to the French hotel company, the transaction includes 15 hotels, of which four are owned hotels, four are variable leased and seven are under management contract.
The hotels are located in major cities such as São Paulo and Rio de Janeiro in Brazil, Buenos Aires in Argentina and Santiago in Chile. Eleven of the 15 hotels are located in Brazil, South America’s major economic force.
The acquisition of the portfolio is expected to support the group’s Sofitel, Pullman, Novotel and Mercure brands.
The transaction also includes a secured pipeline of 14 hotels under management contract and the acquisition of two South American brands Ceasar Park and Ceasar Business operated by Grupo Posadas.
Accor chief operating officer Latin America Roland Bonadona said the group is consolidating its presence in the region, with more than 200 hotels.
"We are very ahead of schedule on our expansion plan. Within the next three years, Accor and Posadas pipelines combined will allow us to operate more than 300 hotels," Bonadona added.
The deal will help Accor achieve a network of 164 hotels and 26,200 rooms in Brazil, covering a range of hotel segments.
Accor is also set to get a bigger share of business with the new deal, as it can expect a surge in tourists during the 2014 soccer World Cup and the 2016 Olympic Games, which are going to be held in Brazil.
Accor’s portfolio in South America will comprise more than 200 hotels and about 34,000 rooms in total.