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Rumors surface about Starwood Capital selling Louvre

Accor is among potential buyers of budget operator Louvre Hotels, Paris, which owner U.S. investment group Starwood Capital is seeking to sell, a source close to the matter told Reuters on Monday.

“Accor is looking at the dossier but the process is at an early stage,” the source said.

French daily Les Echos said on Monday that Starwood was seeking buyers for Louvre Hotels, operators of 1,000 hotels in 47 countries, and that Accor was among those that had submitted non-binding offers in a sale which could raise €1.2-1.5 billion (US$1.5-1.9 billion) — or over 10 times gross operating profit of €110 million (US$139 million).

Among other potential buyers, Les Echos cited private equity groups PAI Partners, CVC, Blackstone, and French property group Fonciere des Murs.

Starwood Capital, which took on Louvre Hotels as part of its acquisition of Taittinger’s hotel and champagne empire in 2005, could not be immediately reached for comment.

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