AccorInvest plans to sell €2 billion of hotel assets in Europe and Latin America in order to cut debt. The group, which has more than 750 hotels operated by Accor SA, is looking to raise about €2 billion from hotel sales – including those under the Sofitel brand in Paris – to repay creditors and will also talk to lenders to amend the terms and extend the maturity of €4 billion of debt coming due in 2025.
AccorInvest is working with Societe Generale SA on the sale of the Paris hotels. It has also hired other brokers and banks to advise on selling five Ibis hotels in the UK, as well as portfolios of assets in Germany and Latin America, a hotel in the Netherlands and a Sofitel in the central and eastern Europe region. The company is also working with Rothschild & Co. ahead of the talks with creditors.
If successful, this sizable divestment hotel assets will no doubt, have far-reaching impacts on the sector, including but not limited to asset values and annual transaction amounts in the concerned markets. While the divestments present opportunities for investors to acquire established hotel assets in prime locations, AccorInvest’s decision to move on such a sizable sale could signify serious financial pressures.
