Sydney – 04 January 2016
AccorHotels has reached an agreement with a wholly owned subsidiary of the Abu Dhabi Investment Authority to restructure a portfolio of 31 hotels with 4,097 rooms in Australia.
The agreement involves a portfolio which was purchased by the ADIA subsidiary in 2013 and operated by AccorHotels.
Under the restructure of the portfolio AccorHotels’ HotelInvest 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). It will also acquire the real estate of the remaining 15 ibis and ibis Budget branded properties for AUD$200 million.
“This deal is in line with our stated strategy to optimise cashflow generation, reduce earnings volatility and restructure lease contracts into owned and managed hotels”, said John Ozinga, COO of HotelInvest. “The acquisition of the economy hotels in key locations is a signal of our continued focus on supporting the group’s growth strategy by holding a selective portfolio of profitable hotel property assets.”
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.