Accor to Sell 450 Hotels
May 19, 2010 - French hotel group Accor has confirmed it is to sell 450 property holdings presently owned outright before 2013. The design is part of the ongoing Asset Right strategy initiated in 2005, which based on adapting each hotel's ownership structure to its segment and location.
In building a hotel portfolio offering a coherent mix of capital-intensive and asset light ownership structures, Accor aims to leverage the strategic fit between the benefits offered by each one. Based on current market projections, the asset disposal program is expected to increase cash by €1.6 billion and reduce adjusted net debt by €2.0 billion by 2013.
Beyond 2013 - after the asset disposal program has been completed - Accor will continue to restructure its portfolio of owned properties. This process should continue to reduce adjusted net debt by around €200-300 million a year, the hotelier argued.
Accor - which already owns the Novotel and Motel 6 chains - aims to utilise this strategy to become one of the world's three leading hotel groups by 2015. This will be achieved by adding as many as 40,000 rooms a year to its existing stock of approximately 500,000 rooms in 90 countries. Growth is likely to be assisted by “clear signs of improvement” during the first quarter of 2010 in most countries, particularly in Europe.
“Looking beyond the positive outlook linked to the cyclical upturn, expanding demand in both developed and emerging markets should drive long-term growth,” added Accor.
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