Accor: Sale of two MGallery hotels in Germany and the Netherlands under a €44m Sale & Variable lease-back agreement
As part of its asset management strategy, Accor announces a sale and lease back agreement concerning the MGallery Mondial Am Dom in Cologne (207 rooms) for €20.5m and the MGallery Convent Hotel in Amsterdam (148 rooms) for €23.5m. The transaction includes a renovation program of €12.4m, €7.3m of which will be invested by the buyer.
Both hotels will remain operated by Accor through a 15 year commercial lease agreement that will be renewable at Accor's option. The turnover rent averages 21.5% of the annual revenue of the hotels. Based on 2011 revenue, the net variable rent would have reached €3m last year. Insurance costs, real estate taxes and structural capital expenditures will now be paid by the new owner.
The buyer is the hotel real estate investment fund of Internos Real Investors, a major player in the real estate and hotel sector in Europe. This new transaction confirms the Group's ability to continue to actively manage its assets, in line with its asset-management strategy of reducing adjusted net debt by €2.2 billion by 2015.
About Accor, a world-leading hospitality group
Accor is a world-leading hospitality group offering stays and experiences across more than 110 countries with over 5,600 hotels and resorts, 10,000 bars & restaurants, wellness facilities and flexible workspaces. The Group has one of the industry's most diverse hospitality ecosystems, encompassing around 45 hotel brands from luxury to economy, as well as Lifestyle with Ennismore. ALL, the booking platform and loyalty program embodies the Accor promise during and beyond the hotel stay and gives its members access to unique experiences. Accor is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity, and inclusivity. Accor's mission is reflected in the Group's purpose: Pioneering the art of responsible hospitality, connecting cultures, with heartfelt care. Founded in 1967, Accor SA is headquartered in France. Included in the CAC 40 index, the Group is publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information, please visit group.accor.com or follow us on X, Facebook, LinkedIn, Instagram and TikTok.