Accor’s swerve away from asset-light continues as the hotel company announced on Tuesday that its hotel ownership business HotelInvest purchased 13 hotels in England from Tritax for £71 million (US$117 million).
The portfolio, which includes 12 Ibis and 1 Ibis Budget, represents 1,194 rooms and includes hotels in Coventry, Coventry South, Birmingham Holloway Circus, Birmingham Bordesley, Leicester City, Plymouth, Sheffield City Shude, Liverpool, Manchester Princess Street, as well as London Stratford, London Thurrock and London Barking.
As a result of the purchase three Accor-owned F1 hotels adjacent to the properties in Liverpool, London Barking and London Thurrock will be restructured as extensions of the newly acquired Ibis Budget and Ibis hotels.
Accor, Courcouronnes, France, has operated the properties under variable-rent leases since 2001, and since 2005 for Tritax. The acquisition will be financed 100% through debt.
“These transactions demonstrate Accor’s ability to act swiftly in implementing the strategy announced nine months ago. It’s an important step forward in the significant restructuring that we are leading in HotelInvest, fully aligned with our objectives which include creating value by optimizing return on capital employed, while strengthening our position as the largest owner of economy and midscale hotels in key European markets,” said John Ozinga, COO of HotelInvest.