Fox Business/Dow Jones Newswires - January 13, 2011
French hotel operator Accor S.A. (AC.FR) Thursday confirmed the sale of 49 hotels in France, Belgium and Germany to a consortium comprised of Predica, a subsidiary of Credit Agricole S.A. (ACA.FR) and Fonciere des Murs.
- 43 of the properties were divested in December 2010, while the six remaining hotels will be sold in 2011.
- The total transaction is valued at EUR378.4 million.
- Accor will continue to manage the hotels through a variable lease agreement, with the rent averaging 19% of the hotels' annual revenue without any guaranteed minimum1. Under the terms of the lease, structural maintenance costs, insurance and property taxes will be paid by the new owner.
- The agreement includes a EUR47.6 million renovation program, of which EUR33 million will be financed by the buyer, thereby enabling Accor to speed up the introduction of its new-generation Etap Hotel and Ibis rooms.
- The transaction is in line with Accor's 2010 goal of selling EUR600 to EUR650 million in hotel property assets, as part of its broader objective of divesting EUR2 billion worth of assets over the 2010-2013 period.
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