Paris – 3 March 2017 –
Accor Hotels announces it has signed an agreement with Brazil Hospitality Group (BHG) and its shareholders, funds managed by GP Investments and GTIS Partners, in order to take over the management of 26 hotels (c. 4,400 rooms) currently owned or managed by BHG, the third-largest hotel company in Brazil.
The portfolio includes economy, midscale and upper upscale hotels in Brazil’s major markets, especially in Rio de Janeiro and Sao Paulo, complementing well Accor Hotels’ existing network in Brazil, and consolidating the Group’s leadership across all segments. The hotels will undergo major renovation and repositioning works and shall progressively be reflagged until the end of 2019 under AccorHotels brands, including ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman, under long-term management agreements.
The management portfolio will be acquired by Accor Hotels for a consideration of R$ 200m, or c. €60m at current exchange rate. The transaction is expected to close in Q4 2017 and is subject to the approval of the Brazilian antitrust authority. It will be accretive to AccorHotels results as soon as 2018, notably thanks to significant synergies with the Group’s existing operating platform in the country.