This transaction, in line with the external growth strategy of the Group, includes 2,600 rooms (15 hotels) and a secured pipeline of 2,000 rooms (14 hotels).
The acquisition of this hotel portfolio of Grupo Posadas, a Mexican hotel company, is fully in line with Accor’s ambitious development strategy launched last September, which includes notably Accor’s ability to reinforce its leadership in emerging markets, through selective acquisitions. That follows the Mirvac acquisition in Australia and New Zealand, closed on May 22nd.
The total amount paid by Accor for this acquisition is $275 million. The transaction includes 15 hotels, of which 4 owned hotels, 4 variable leased hotels and 7 hotels under Management contract. These hotels are located in key cities as São Paulo and Rio de Janeiro in Brazil, Buenos Aires in Argentina and Santiago in Chile. 11 of these 15 hotels are located in Brazil, main regional economic force. The acquisition of this portfolio will reinforce the brands operated in the region: Sofitel, Pullman, Novotel and Mercure. The transaction also includes a secured pipeline of 14 hotels under Management contract and the acquisition of two brands operated by Grupo Posadas in South America: Ceasar Park and Ceasar Business.
With this transaction, the Group’s network in Brazil will reach 164 hotels and 26,200 rooms, covering the spectrum of hotel segments and resulting in a reinforced presence in the Up & Midscale segment, just before two major sports’ events: the World Football Cup in 2014 and the Summer Olympic Games in 2016. In total, Accor’s portfolio in South America will consist of more than 200 hotels and about 34,000 rooms and will so strengthen its leadership on the continent.
“With its strong financial position and now a structurally generating cash model, the Accor Group, through this acquisition, records another success and confirms its ambitious expansion plan ”, said Denis Hennequin, Chairman and Chief Executive Officer. “Accor strives towards its ambitions, with expansion of its network, revitalization of the brand portfolio, optimization of the asset management policy and recognized operational excellence. This operation is in line with our strategic goal: become the global reference in the hotel industry”.
Completion of the deal should occur by the end of 2012. The real estate component of this hotel portfolio will be managed according to Accor’s asset management policy.
“This project is inspiring for all Accor and Posadas teams”, said Roland Bonadona, Chief Operating Officer Latin America. « This acquisition gathers high quality hotels, including a true flagship with an exceptional luxury hotel on the Ipanema beach. Accor consolidates its presence in the region, with more than 200 hotels. This is a strategic milestone for the Group, as it enables us to optimize our network, our distribution channels, and our support services platforms. We are very ahead of schedule on our expansion plan. Within the next three years, Accor and Posadas pipelines combined will allow us to operate more than 300 hotels”.
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