AccorHotels has signed an agreement with Brazil
Hospitality Group (BHG) and its shareholders, funds managed by GP
Investments and GTIS Partners, in order to take over the
management of 26 hotels (c. 4,400 rooms) currently owned or
managed by BHG, the third-largest hotel company in Brazil.
The portfolio includes economy, midscale and
upper upscale hotels in Brazil’s major markets, especially in Rio
de Janeiro and Sao Paulo, complementing AccorHotels’ existing
network in Brazil.
The hotels will undergo major renovation and
repositioning works and shall progressively be reflagged until the
end of 2019 under AccorHotels brands, including ibis, ibis Styles,
ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman,
under long-term management agreements.
The management portfolio will be acquired by
AccorHotels for a consideration of R$200m, or c. €60m.
The transaction is expected to close in Q4 2017 and
is subject to the approval of the Brazilian antitrust authority.
It will be accretive to AccorHotels results as soon as 2018,
notably thanks to significant synergies with the group’s existing
operating platform in the country.
Sebastien Bazin, Chairman & CEO of AccorHotels
said, “Today’s Brazil is a land of major opportunities. This
transaction is a new milestone in the history of AccorHotels in
this country, where we have been a firm leader for decades. It
will bring new landmark hotels as well as an increased brand
awareness across all segments. It also anchors a strong and
long-term relationship with BHG, one of the largest owners of
hotel real estate in Brazil, which will bring incremental growth
opportunities going forward.”
Alexandre Solleiro, CEO of BHG said, “We are
thrilled with the opportunities that this transaction creates for
our company, our business partners and our teams. Because 100% of
the capital generated from this transaction will be reinvested in
our owned hotels, we will be able to accelerate the repositioning
and performance of BHG as a leading owner of hotels in Brazil. At
the same time, we will also be able to better focus our resources
and management teams in the development of our business of
managing third party hotels through our owned and licensed
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