Left to right: Algeciras CEO Andrés Solari and AccorHotels South America CEO Patrick Mendes — Photo by Accor

AccorHotels and Chilean group Algeciras announce that they signed an agreement with the shareholders of Atton Hoteles 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) across Chile, Peru, Colombia and Florida, USA. Besides, AccorHotels will acquire 20% of the Property Company that owns these assets, the remaining 80% being bought by Algeciras. Atton Hoteles was founded in Chile in 2000. The hotels cater to the business travelers on the midscale and upscale segment. It has 3 hotels under development. 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 & Mercure in the midterm.

Total cash consideration for AccorHotels will be US$105m or c. €89m at current exchange rate, including €67m for the operating Company, and €22m for the 20% stake in the real estate arm, reflecting post-synergies & 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 & 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.

ABOUT ALGECIRAS

Algeciras is an investment and management holding, founded and led by Eduardo Elberg. The holding has a diversified business portfolio, participating in the real estate, hotel, banking, automotive and agribusiness. In addition to Chile, the holding's international presence includes the development of projects in Peru, Colombia and the United States of America.

About Accor, a world-leading hospitality group

Accor is a world leading hospitality group offering experiences across more than 110 countries in 5,600 properties, 10,000 food & beverage venues, wellness facilities or flexible workspaces. The Group has one of the industry's most diverse hospitality ecosystems, encompassing more than 45 hotel brands from luxury to economy, as well as Lifestyle with Ennismore. Accor is committed to taking positive action in terms of business ethics & integrity, responsible tourism, sustainable development, community outreach, and diversity & inclusion. Founded in 1967, Accor SA is headquartered in France and publicly listed on Euronext Paris (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information, please visit www.group.accor.com or follow us on X, Facebook, LinkedIn, Instagram and TikTok.