PARIS—AccorHotels is making moves in the industry, with the recent sale of 57.8% of AccorInvest to investors and the completed acquisition of Australia’s Mantra Group. Here’s a closer look at these two transactions:
AccorHotels has completed the sale of 57.8% of the capital of AccorInvest to sovereign wealth funds Public Investment Fund (PIF) and GIC, institutional investors Colony NorthStar, Crédit Agricole Assurances and Amundi, and other private investors.
For AccorHotels, the transaction results in a gross cash contribution of approximately $5.3 billion (€4.6 billion), which is slightly more than the approximately $5.13 billion (€4.4 billion) reported in February and in line with the higher percentage of capital finally sold.
AccorHotels will hold 42.2% of the capital of AccorInvest, which will no longer be included in the Group’s consolidated financial statements as of June 1. As part of the transaction, AccorHotels and AccorInvest will maintain their close, long-standing relationship through long-term partnership agreements, according to the company.
“By completing the sale of close to 58% of the capital of AccorInvest, we have successfully finalized the transformation process begun five years ago,” said Sébastien Bazin, chairman and CEO of AccorHotels. “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, said: “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.”
In other news, AccorHotels completed the acquisition of Mantra Group Limited, which includes all issued capital for approximately $965 million (€830 million). AccorHotels is now the only shareholder in Mantra.
With the transition in effect, the following executives have been appointed directors of Mantra: Michael Issenberg, along with Steven Andrew Lake as his alternate, Louise Maree Daley, Simon Roger McGrath and Philip Joseph Basha.
Mantra is one of Australia’s largest hotel and resort marketers and operators with 127 properties and more than 20,000 rooms in hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii.
Properties in Mantra’s portfolio range from luxury accommodations and coastal resorts to serviced apartments in city and key leisure destinations, under three key brands: Peppers (28 properties); Mantra (75 properties); and BreakFree (24 properties). Mantra also manages core accommodation services including guest relations and reception areas, restaurants and bars, conference and function centers, pool and entertainment facilities and offices. Mantra has more than 5,500 employees.