AccorHotels announced Thursday it is working to complete a deal to spinoff 85 European hotels worth €504 million (US$548 million) into a new franchise business, selling 70% of the new company to Eurazeo Patrimoine, while retaining a 30% stake. This ownership structure may rapidly be strengthened by the arrival of an additional institutional investor.
AccorHotels will continue to manage the portfolio that reported includes economy and midscale hotels with a combined 9,125 rooms located mostly in France (61 hotels) and Spain (9 hotels. The portfolio includes one Pullman, 19 Novotel, 13 Mercure, 35 ibis, 3 ibis Styles and 14 ibis budget hotels.
AccorHotels will sell to its new partner the 28 owned hotels for €146 million (US$159 million), while the 57 other assets currently owned by Fonci?re des R?gions, Axa IM – Real Assets, acting on behalf of its clients, and Invesco, will trade for €358 million (US$389 million).
All of the hotels included in the transaction will maintain their AccorHotels brand via long-term franchise agreements and undergo renovation programs with a budget of more than €100 million (US$109 million) within 36 months after the transaction has been finalized.
The entity’s management team will be partially made up of AccorHotels employees who are leaving the group to contribute their expertise to the new franchisee.