PARIS—AccorHotels has entered agreements to sell a majority stake in AccorInvest. Under the terms of the agreements, AccorHotels would initially sell 55% of AccorInvest to sovereign funds the Public Investment Fund (PIF) and GIC; institutional investors Credit Agricole Assurances, Colony NorthStar and Amundi; and other investors. For AccorHotels, the sale would result in a cash contribution of roughly $5.4 billion.
“These agreements represent a key milestone for the group,” said Sébastien Bazin, chairman/CEO of AccorHotels. “Following the separation of AccorInvest into a standalone legal entity last summer, we are now gathering a roundtable of leading investors, on the basis of a valuation that fully reflects its global leadership and the quality of its assets, while building a long-term relationship between AccorHotels and AccorInvest. These elements were essential to make this operation a success for all stakeholders: teams, partners, as well as present and future shareholders of both entities. The entry of new shareholders and the de-consolidation of AccorInvest will provide AccorHotels with substantial leeway to enhance our dynamic growth and innovation strategy and create value for shareholders. For its part, AccorInvest will take advantage of its new powerful shareholders’ support, as well as a strengthened financial structure to execute its roadmap and continue to reinforce its portfolio of assets.”
The AccorInvest hotels would be operated by AccorHotels under very-long-term contracts, namely 50 years (including a 15-year renewal option) for luxury and upscale hotels and 30 years on average (including a 10-year renewal option) for hotels in the midscale and economy segments. The management contract terms that have been negotiated between the parties are in line with market practices.
The transaction is expected to be finalized in the second quarter of 2018.