Sunday, January 28, 2007

Accor Seeking £500 Million Sale Leaseback of 30 UK Hotels

Estates Gazette reports that French hotel company Accor is seeking a sale leaseback on a portfolio of 30 mid-market Novotel and budget Ibis hotels across the UK.

Accor retained NM Rothschild late last year to arrange the transaction, code-named Project Milky Way. Accor is seeking revenue-based leases so it will not be liable to pay all its rent should it struggle to fill the rooms. British Land is reportedly competing with at least two other bidders to buy a £500m portfolio of hotels.

The sales are part of Accor's strategy to release cash from its portfolio to create a less capital intensive hotel group. During the past 18 months, the firm has sold more than 260 hotels for £1.1bn and plans to sell a further 535 hotels worth £2.2bn by 2008. Accor currently owns more than 1,000 freehold hotels. Sphere: Related Content

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