Poland’s leading hotel group, Orbis, has accepted an offer from Accor to sign a new master license agreement until 2035 and take over the current Accor portfolio in Central Europe representing 46 hotels, including 11 owned (1,974 rooms), 17 leased (3,573 rooms), 11 managed (1,685 rooms) and seven franchised (821 rooms). The price for the deal amounts to €142.3 million (US$177 million).
Orbis becomes the sole licensor of all Accor brands in 16 countries including Bulgaria, Czech Republic, Estonia, Lithuania, Latvia, Poland, Macedonia, Romania, Slovakia, Hungary, Croatia, Slovenia, Bosnia and Herzegovina, Montenegro, Serbia and Moldova. Fully, 76% of these hotels are located in capital cities, and 38 of them are operational. Eight projects are in the pipeline, of which three hotels will be managed and five franchised.
“After negotiations the license has been extended from 10 to 16 countries and from a 15- to a 20-year period of time,” said Gilles Clavie, president of the management board of Orbis. “Entering new markets gives us a great opportunity for more robust supply growth.”
Clavie added that Orbis has a very good cash position and is debt-free. As a result, the deal is going to be financed from its own funds as well as from bank loans that Orbis may replace by proceeds from a bond issue.
Orbis also stated it will accelerate its expansion mostly through management, franchise and in opportunistic use of ownership. Currently, the Orbis Group comprises 68 hotels (including 52 owned) operating in 32 cities and resorts in Poland and the Baltic countries.