Accor, the leading hotel operator in Africa with 26,000 rooms, announces the sale of its 52.6% stake in “Hotel Formula 1” to its historical South-African partner, Southern Sun Hotels, a subsidiary of the Tsogo Sun group.
Hotel Formula 1 was formed in 1991, as a joint venture between Accor and Southern Sun. The Company owns 20 hotels totaling 1,474 rooms, in addition to managing 3 hotels already owned by Southern Sun across South Africa. All 23 hotels will now operate as franchised units, under the Formula 1 brand.
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The disposal price of €28m comprises €25m attributable to Accor’s stake in Hotel Formula 1 and a €3m refund of a loan made by Accor to the Company. The transaction is subject to the approval of local Competition Authorities.
Part of the Group Asset Management strategy that aims to reduce the adjusted net debt by €2.2 billion by 2015, this transaction confirms the Group’s ability to continue to actively manage its assets in order to focus on its core business as a hotel operator.
