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AccorHotels has announces that it has completed the sale of 57.8% of the capital of AccorInvest for €4.6bn (£4bn).
The investment comes from sovereign wealth funds Public Investment Fund (PIF) and GIC, institutional investors Colony NorthStar, Crédit Agricole Assurances and Amundi, among other private investors.
For AccorHotels, the transaction results in a gross cash contribution of €4.6bn (£4bn) which is slightly more than the €4.4bn (£3.8bn) that was announced in February and is in line with the higher percentage of capital finally sold.
AccorHotels will therefore retain 42.2% of the capital of AccorInvest, which will no longer be included in the group’s consolidated financial statements as of June 1, 2018.
As part of the transaction, AccorHotels and AccorInvest will maintain the relationship through very-long-term partnership agreements.
Sébastien Bazin, chairman and CEO of AccorHotels, said: “By completing the sale of close to 58% of the capital of AccorInvest, we have successfully finalised the transformation process begun five years ago.
“The deal enables us to further accelerate the development of AccorHotels by focusing our resources and energy on strengthening our brand portfolio and our leadership position in key markets, and on pursuing our strategy of delivering innovation and excellence to our guests and hotel owner partners. With our new, primarily asset-light structure, we will be able to deploy our ambitious and disruptive vision of ‘augmented hospitality’ to the full.”
John Ozinga, CEO of AccorInvest, added: “Today is the start of a new chapter for AccorInvest. With greater resources and fully engaged teams, we are now going to speed up the consolidation of our portfolio, the renovation and repositioning of our assets, and the development of new projects.
“Drawing on the strength of AccorHotels’ brands, we intend to cement our position as the leading hotel investor in Europe by enhancing the attractiveness and value of our hotel portfolio.”
