AccorHotels to Restructure Lease Portfolio of 31 Hotels in Australia
AccorHotels will be restructuring a portfolio of 31 hotels (consisting of 4,097 rooms) in Australia after reaching an agreement with a wholly-owned subsidiary of the Abu Dhabi Investment Authority. The agreement involves a portfolio which was purchased by the ADIA subsidiary in 2013 and operated by AccorHotels.
Hotels in Darling Harbour | Photo Credit: AccorHotels
Under the restructure of the portfolio of 31 hotels, AccorHotels will convert 15 triple-net leases into 50 year management agreements and extend the management term of one hotel also to 50 years (total 16 hotels). AccorHotels (HotelInvest) will also acquire the real estate of the remaining 15 ibis and ibis Budget branded properties for AU$200 million (€137 million). The hotels are located in prime locations including Sydney’s Darling Harbour, Sydney Olympic Park and in Canberra, Australia’s Capital City. The portfolio is also spread across city and regional locations in New South Wales, Victoria, Northern Territory, Western Australia and Queensland and encompasses the Pullman, Novotel, Mercure, ibis, ibis Styles and ibis Budget brands.
Sydney Olympic Park } Photo Credit: AccorHotels
The acquisition will be accretive to AccorHotels’ EBIT in 2017 and will further strengthen its market leadership position in Australia by securing tenure on key assets. Completion of the acquisitions is subject to the usual conditions for this type of transaction, as well as regulatory approvals.
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