AccorHotels Initiates Sale of Majority Stake in AccorInvest

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AccorHotels announces that it has signed agreements with a group of international investors with a view to selling a majority of the capital of AccorInvest. Under the terms of the agreements, AccorHotels would initially sell 55% of AccorInvest to Sovereign Funds, namely the Public Investment Fund (PIF) and GIC, Institutional Investors, namely Credit Agricole Assurances, Colony NorthStar and Amundi, and other investors.

For AccorHotels, the sale would result in a cash contribution of €4.4 billion. The AccorInvest hotels would be operated by AccorHotels under very-long-term contracts, namely 50 years (including a 15-year renewal option) for luxury and upscale hotels and 30 years on average (including a 10-year renewal option) for hotels in the midscale and economy segments. The management contract terms that have been negotiated between the parties are in line with market practices.