AccorHotels has reached a new agreement for the restructuring of its Australian portfolio, which will include the acquisition of 15 ibis hotels in the country.
Under the terms of the deal with a subsidiary of the Abu Dhabi Investment Authority (ADIA), the European hotel group’s real estate unit, HotelInvest, will acquire 15 ibis and ibis Budget properties comprising almost 1,600 rooms for a total of AU$200 million (US$145m). The agreement includes hotels in Sydney, Brisbane, Canberra and Melbourne, as well as two airport hotels.
In addition, AccorHotels has agreed long-term management agreements for 16 of its Australian hotels. These include ibis, ibis Styles, Mercure, Novotel and Pullman properties with a combined inventory of more than 2,500 rooms. The new contracts will run for 50 years.
“This deal is in line with our stated strategy to optimise cash flow generation, reduce earnings volatility and restructure lease contracts into owned and managed hotels,” said John Ozinga, chief operating officer 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 agreement involves a portfolio which was purchased by the ADIA subsidiary in 2013.