AccorHotels and Algeciras Sign Agreement for Purchase of Chilean Group Atton Hotels
AccorHotels
and Chilean group Algeciras announce that they signed an agreement with
the shareholders of Atton Hotels in order to acquire the company. As
per the agreement, AccorHotels will acquire 100% of the management
company that operates 11 Atton hotels (2,259 rooms), plus three hotels
under development, across Chile, Peru, Colombia and Florida, USA. In
addition, AccorHotels will acquire 20% of the Property Company that owns
these assets, with the remaining 80% being bought by Algeciras. Atton
Hotels was founded in Chile in 2000 and caters to midscale and upscale
business travelers. In order to capitalize on Atton's existing brand
equity, most of these properties will be co-branded with AccorHotels
brands, before being fully rebranded to Pullman, Novotel, MGallery and
Mercure in the midterm.
Total cash consideration for AccorHotels will be US$105 million or c.
€89 million at the current exchange rate, including €67 million for the
operating company, and €22 million for the 20% stake in the real estate
arm, reflecting post-synergies and pipeline 2020e EV/EBITDA of
respectively 10X and 9X. The transaction will have an accretive impact
on Group earnings from the first year. AccorHotels will have a put
option to sell its 20% in the PropCo to Algeciras after five years.
This acquisition further consolidates the current footprint of
AccorHotels in Latin America, where the Group has built leadership for
many years, with 335 hotels operating, and 166 under development, while
strengthening its presence in fast growth markets such as Chile and
Peru.
Patrick Mendes, CEO of AccorHotels for South America stated: “We
are delighted to have come to this strategic agreement with Algeciras.
With Atton's portfolio, AccorHotels will strengthen its leadership
position in Latin America and complement its offer to its customers and
loyalty members with attractive key destinations.”
The transaction is subject to regulatory approvals. It should be completed during the second half of 2018.
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