In what it calls the completion of its asset-light roadmap, Accor on Tuesday announced the disposal of its 85.8% stake in Orbis to AccorInvest for €1.06 billion (US$1.2 billion), as well as the sale and management back of 16 Mövenpick hotel leases to German fund HR Group, that will result in a €429 million (US$478.5 million) reduction of Accor’s consolidated debt.
Together with the recent disposals of a 5.2% stake in AccorInvest and a 5% stake in Huazhu, Accor further strengthens its financial capacity to engage incremental shareholder returns; pursue bolt-on acquisitions of asset-light hotel companies; and continue reinforcing its credit profile and investment grade status.
After the repurchase of 7.5% of its share capital for €850 million (US$947 million) over the last 18 months, Accor announces a €1 billion (US$1.114 billion) return to shareholders, to be executed over the next 24 months.
“Accor has now become a fully asset light group,” said Accor Chairman and CEO Sébastien Bazin. “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.”
Accor’s sale of its stake in Orbis came at a price of PLN115 per share (US$30), corresponding to proceeds for Accor of PLN4.55 billion (US1.2 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 (US$319 million). The closing of the transaction is expected to take place by the end of the first quarter 2020.
The Mövenpick 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.