Accor completes five-year asset-light roadmap

Accor has entered into a binding agreement to sell its 85.8 per cent stake in Orbis to AccorInvest.

The deal is priced PLN115 per share, corresponding to proceeds for Accor of PLN4.55 billion (€1.06 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.

This sale will be implemented by way of a public tender offer, which will be filed today by AccorInvest with the Polish Financial Supervision Authority for all of the shares in Orbis’ share capital.

The closing of the transaction is expected to take place by the end of the first quarter 2020.

The hotel giant said the deal was the final part of its asset-light roadmap.

Share buyback

At the same time, the company announced a new share buyback.

After the repurchase of 7.5 per cent of its share capital, for €850 million, over the last 18 months, Accor said it would return a further €1 billion return to shareholders, to be executed over the next 24 months.

The figure will include circa €300 million to complete the 2018 share buy-back plan.

Sébastien Bazin, chairman and chief executive of Accor, explained: “By combining a two-year €1 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.

“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.”

Mövenpick

Finally, 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 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.

Completion of the transaction will be subject to customary conditions, including merger control clearance.

Source: breakingtravelnews.com