PARIS—Accor has completed its asset-light roadmap with the disposal of Orbis and the sale and management back of the Mövenpick leases.
Accor entered into a binding agreement to sell its 85.8% stake in Orbis to AccorInvest at a price of €1.06 billion ($1.2 billion), in line with Orbis’ gross asset value. This completes the Orbis transaction, following the acquisition by Accor of Orbis’ management and franchise business last October for €286 million ($319 million).
The closing of the transaction is expected to take place by the end of the first quarter 2020.
In addition, Accor has agreed to restructure Mövenpick hotels’ lease portfolio through a sale and management back agreement with HR Group, a German private fund. This will result in a €429 million ($478.5 million) 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.
Together with the recent disposals of a 5.2% stake in AccorInvest and a 5% stake in Huazhu, Accor further strengthens its financial capacity:
- to engage incremental shareholder returns
- to pursue bolt-on acquisitions of asset-light hotel companies
- to continue reinforcing its credit profile and investment grade status
“Accor has now become a fully asset-light group. By combining a two-year €1 billion ($1.11 billion) 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,” said Sébastien Bazin, chairman and CEO, Accor. “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.”