PARIS—AccorHotels and Chilean group Algeciras signed an agreement to acquire Atton Hotels. As per the agreement, AccorHotels will acquire 100% of the management company that operates 11 Atton hotels (2,259 rooms), plus three hotels under development across Chile, Peru, Colombia and Florida. In addition, AccorHotels will acquire 20% of the property company that owns these assets, with Algeciras buying the the remaining 80%.
To capitalize on Atton’s existing brand equity, most of these properties will be co-branded with AccorHotels brands, before being fully rebranded to Pullman, Novotel, MGallery and Mercure in the midterm.
Total cash consideration for AccorHotels will be $105 million or €89-million at the current exchange rate, including €67-million ($80,242,550) for the operating company and €22 million ($26,348,300) for the 20% stake in the real estate arm, reflecting post-synergies and pipeline 2020e EV/EBITDA of respectively 10X and 9X. AccorHotels will have a put option to sell its 20% in the PropCo to Algeciras after five years.
This acquisition further consolidates the current footprint of AccorHotels in Latin America, where the Group has 335 hotels operating and 166 under development, while strengthening its presence in markets such as Chile and Peru.
The transaction is subject to regulatory approvals. It should be completed during the second half of this year.