AccorHotels plans to sell 85 hotels across Europe for more than €500 million.
The French chain has entered into exclusive negotiations for the sale of the properties in Europe to a new franchisee hotel operator, 30% owned by AccorHotels.
All of the economy and mid-range hotels included in the deal will maintain their AccorHotels brand via long-term franchise agreements.
They will be refurbished within three years at a cost of €100 million after the transaction has been finalised.
The new entity’s management team will be partially made up of AccorHotels employees who are leaving the group to contribute their expertise to the new franchisee.
The portfolio comprises one Pullman, 19 Novotel, 13 Mercure, 35 Ibis, 3 Ibis Styles and 14 Ibis budget hotels. The majority – 61 – are located in France with nine in Spain and the remainder spread across Italy, Portugal, Germany, Austria, Belgium Holland.
The new company will be operating by the summer and the transaction is the subject of a consultation procedure with employee representatives.
John Ozinga, chief operating officer of AccorHotels’ HotelInvest arm, said: “We are delighted to be contributing to the emergence of a major new hotel investor in the European market, which we intend to support over the long term.
“The deal will create value for AccorHotels, for all of the employees and entities involved in the transaction, and for the new entity, which will serve as a key partner for the group going forward.”