AccorHotels sells major stake to investors in a $5.4bn deal
Investors includes sovereign wealth funds of Saudi Arabia and Singapore among others
AccorHotels signed deals with international groups including the sovereign wealth funds of Saudi Arabia and Singapore, with a view of selling a majority of the capital of AccorInvest, namely 55% stake that owns its hotels.
The sale, which follows the separation of AccorInvest into a standalone legal entity last summer, will result in a cash contribution of €4.4 billion (US$5.4 billion), the company said in a statement. Other institutional investors includes Credit Agricole Assurances, Colony NorthStar and Amundi among others.
AccorHotels chairman and chief executive officer Sébastien Bazin said: “These agreements represent a key milestone for the Group. Following the separation of AccorInvest into a stand-alone legal entity last summer, we are now gathering a roundtable of leading investors, on the basis of a valuation that fully reflects its global leadership and the quality of its assets, while building a long-term relationship between AccorHotels and AccorInvest.”
“The entry of new shareholders and the deconsolidation of AccorInvest will provide AccorHotels with substantial leeway to enhance our dynamic growth and innovation strategy and create value for shareholders. For its part, AccorInvest will take advantage of its new powerful shareholders’ support, as well as a strengthened financial structure to execute its roadmap and continue to reinforce its portfolio of assets,” Bazin added.
The AccorInvest hotels would be operated by AccorHotels under long-term contracts - 50 years which includes a 15-year renewal option for luxury and upscale hotels, the statement said. For midscale and economy hotels, contracts stretching 30 years on average with a 10-year renewal option.
Currently, AccorInvest consists 891 hotels across 72 countries in its portfolio.