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French hospitality giant Accor has announced the disposal of its stake in hotel operating company Orbis, as well as the sale and management back agreement of its Mövenpick brand leases.
The company’s stake inOrbis has been sold in a £890m deal to AccorInvest and is expected to be completed during the first quarter of 2020.
Accor also revealed it has struck a deal with Germanprivate equity fund HR Group resulting in a €429m (£361m) reduction of Accor’s consolidated debt, predominantly related to IFRS 16 lease liabilities.
The agreement comprises 16 hotel leases located in Germany, Switzerland and the Netherlands, including three hotels currently in the pipeline, which will be managed by Accor under a 20-year contract.
Accor said the deals are designed to allow the company to become a fully “asset-light”.
Sébastien Bazin, chairman and CEO of Accor, said: “Accor has now become a fully asset light group. By combining a two-year €1bn (£845m) shareholder return program with the pursuit of a targeted acquisition strategy, the Group demonstrates the strength of its new model and its ability to rigorously execute its strategic roadmap.
“We are now focused on the organic growth of our portfolio, the strengthening of our leadership in our key markets, the attractiveness of our brands for our customers and our owners and an unwavering commitment to promoting our values and a distinctive vision of hospitality.”
