Accor buys hotels worth $1.23 billion in Europe HOSPITALITY 3

The properties purchased by Accor

The properties purchased by Accor are in Germany, the Netherlands and Switzerland, and encompass the ibis, ibis budget, Mercure, Novotel and MGallery brands.Pictured: The properties purchased by Accor are in Germany, the Netherlands and Switzerland, and encompass the ibis, ibis budget, Mercure, Novotel and MGallery brands.

National Report – Accor reportedly agreed to purchase hotels in Germany, the Netherlands and Switzerland for approximately $1.23 billion as part of a plan to boost the company’s real estate holdings.

The first portfolio represents 86 hotels, 67 in Germany and 19 in the Netherlands. The properties had been operated by Accor since 2007 under variable-rent leases under the ibis, ibis budget, Mercure and Novotel brands.

A second portfolio of 11 hotels in Switzerland was purchased from Axa Real Estate. These properties had been operated by Accor since 2008 under similar variable-rent leases, and include the ibis, ibis budget, Novotel and MGallery brands.

In early 2014, Sebastien Bazin, CEO of Accor, began focusing the company’s resources on two goals: operating the group’s 14 global hotel brands, and investigating in hotel ownership and investment. As part of the initiative, HotelInvest will stop selling Accor’s hotels unless they are underperforming, while HotelServices will operate the group’s 3,600 properties under a fee-based system. Bazin also revealed there are no plans to dispose of any of the group’s existing hotel brands.

In total, Accor is buying 86 hotels with 11,286 rooms in Germany and the Netherlands from funds managed by Moor Park Capital Partners. HotelInvest’s owned hotels will contribute approximately 69 percent of the unit’s net operating income after the purchase, compared with a medium-term target of 75 percent.

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