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Accor plans £383 million European hotel sell-off

Portfolio of 85 hotels across the continent set to change hands to new franchisee

Accor Hotels, the operator which acquired the FRHI Hotels & Resorts last year for more than £500 million has revealed plans to sell 85 properties to the new franchisee operator.

No hotels in the UK are understood to be affected, but the €504m (£383m) deal covers one Pullman, 19 Novotel, 13 Mercure, 35 ibis, three ibis Styles and 14 ibis budget hotels in France, Spain, Italy, Portugal, Germany, Austria, Belgium and the Netherlands. 

The new franchisee will be 70 per cent owned by French investment company Eurazeo, with the remaining 30 per cent retained by Accor. AccorHotels will sell to its new partner 28 owned hotels and the business interests of all 85 hotels for €146m (£111), while the 57 other hotel assets currently owned by Foncière des Régions, Axa IM – Real Assets and Invesco will be acquired directly by the new entity for €358m (£272).

Accor says the newly created entity will have access to more than €100m (£76m) to carry out hotel renovations.

John Ozinga, COO of Accor’s hotel owner and investment arm HotelInvest, said: "This wide-reaching, innovative transaction is another key step in the transformation of HotelInvest. We are delighted to be contributing to the emergence of a major new hotel investor in the European market, which we intend to support over the long term. The deal will create value for AccorHotels, for all of the employees and entities involved in the transaction, and for the new entity, which will serve as a key partner for the group going forward."

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