Accor has acquired 13 properties in the UK under its HotelInvest owner and investor arm.
The 13 hotels have been bought from Tritax for EUR89 million (GBP71m) that includes 12 ibis and one ibis budget property in locations including Coventry, Birmingham, Leicester, Sheffield, Liverpool, Manchester and London.
Three Accor-owned F1 hotels at the Liverpool, London Barking and London Thurrock sites will be restructured to become extensions of the ibis and ibis budget hotels next to them.
The acquisition will be financed wholly through debt and comes after the hotel chain also sold and franchised back two Novotel properties in Stevenage and Nottingham to Fairview Hotels. Fairview now operates five Accor hotels in the UK with the other three properties namely the Mercure London Bloomsbury, Mercure Letchworth Hall and ibis Stevenage.
John Ozinga, COO of HotelInvest said: “These transactions demonstrate Accor’s ability to act swiftly in implementing the strategy announced nine months ago. It’s an important step forward in the significant restructuring that we are leading in HotelInvest, fully aligned with our objectives which include creating value by optimising return on capital employed, while strengthening our position as the largest owner of economy and midscale hotels in key European markets.”
Restructure improves H1
The acquisition was announced as the group revealed its reorganisation has helped its financial position for the first half of the year. Its net EBIT is up 17.6% to EUR219m while its operating profit before tax was up 38.6% to EUR192m. Net profit came in at EUR60 with the France-based hotel chain expected to reach a full-year EBIT target between EUR575m and EUR595m.
“In the first-half of 2014, our planned reorganisation ensured the Group’s transformation is now well underway. The strong results for the period, with an increase in margins, reflect good momentum and the work of highly committed teams to deploy our new strategy,” said Sebastien Bazin, chairman and CEO of Accor. “Each business now has the means to respond effectively to its specific challenges. We have significantly increased resources and completed major cquisitions/restructuring for HotelInvest in the first half, followed by the agreement signed with Tritax in the United Kingdom. In the second half we will focus in particular on deploying the HotelServices strategy built around innovation, digital solutions and brands.”
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