AccorHotels announced in late December that it has successfully reached an agreement with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) to restructure a portfolio of 31 hotels (comprising 4,097 rooms) located in Australia.
The agreement involves a portfolio which was purchased by the ADIA subsidiary in 2013 and operated by AccorHotels.
Under the restructure AccorHotels will convert 15 triple-net leases into 50 year management agreements and extend the management term of one hotel also to 50 years – a total of 16 hotels.
AccorHotels, through subsidiary HotelInvest, will also acquire the real estate of the remaining 15 ibis and ibis Budget branded properties for AUD$200 million. John Ozinga, COO of HotelInvest stated:
“This deal is in line with our stated strategy to optimise cash flow generation, reduce earnings volatility and restructure lease contracts into owned and managed hotels”
“The acquisition of the economy hotels in key locations is a signal of our continued focus on supporting the Group’s growth strategy by holding a selective portfolio of profitable hotel property assets”.
The hotels are located in prime locations throughout Sydney’s Darling Harbour, Sydney Olympic Park and Canberra as well as across city and regional locations in New South Wales, Victoria, Northern Territory, Western Australia and Queensland and encompasses the Pullman, Novotel, Mercure, ibis, ibis Styles and ibis Budget brands.
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