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Accor gets rid of 49 hotels in Europe

Hotels in France, Germany and Belgium– Accor have sold 49 properties in Europe. The total sum of the deal estimates 378.4 million of Euro. The new owner of the hotels is a joint venture between Fonciere des Murs and Credit Agricole Assurances.

Accor will still operate these hotels, this time as a managing company though. For this the company will have a rent of 19% of the annual revenue. No guaranteed minimum is applied. All taxes for property, as well as maintenance costs and insurance expenses will be paid by the new owner.

According to the agreement, the new owner will also invest funds into the renovation program of these hotels. The total sum of renovation costs reaches €47.6 million. €33 million from this sum will be covered by the joint venture. With the help of this deal Accor hopes to speed up the development of its new Etap Hotel and Ibis brands.

This agreement is the result of the new concept of Accor which was approved in 2010. The company plans to sell assets for €600-€650 million. Due to global economic crisis the company has to stick to the asset-tight strategy, which is currently very popular among many hoteliers.

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