By Gaya Travel on December 22, 2016

 

AccorHotels is pleased to announce that it has successfully reached agreement with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) to restructure a portfolio of 31 hotels (4,097 rooms) in Australia.

The agreement involves a portfolio which was purchased by the ADIA subsidiary in 2013 and operated by AccorHotels.

 

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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 acquire the real estate of the remaining
    15 ibis and ibis Budget
    branded properties for AUD$200 million
    (€137 million);

 

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, 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,” he added said.

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.

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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List of hotels involved:

Hotel Purchased                                        

Ibis Budget Brisbane Airport  (93 Rooms)

Ibis Budget Canberra (75 Rooms)

Ibis Budget Coffs Harbour  (70 Rooms)

Ibis Budget Dubbo (65 Rooms)

Ibis Budget Melbourne Dandenong (71 Rooms)

Ibis Budget Melbourne Fawkner (103 Rooms)

Ibis Budget Newcastle (79 Rooms)

Ibis Budget Sydney Campbelltown (72 Rooms)

Ibis Budget Sydney Casula (74 Rooms)

Ibis Budget Sydney Enfield (80 Rooms)

Ibis Budget Sydney Olympic Park
(currently managed) (156 Rooms)

Ibis Budget Sydney St Peters (105 Rooms)

Ibis Budget Sydney Wentworthville (102 Rooms)

Ibis Melbourne (250 Rooms)

Ibis Sydney Airport (200 Rooms)

Total  Rooms (1,595)

 

Hotels Converted to Long Term Management Contracts                     

Ibis Styles Alice Springs  (102 Rooms)

Ibis Style Geraldton (60 Rooms)

Ibis Style Karratha (60 Rooms)

Ibis Style Katherine (100 Rooms)

Ibis Style Kununurra (60 Rooms)

Ibis Style Mt Isa (57 Rooms)

Ibis Style Plaza Kalgoorlie (98 Rooms)

Ibis Style Port Hedland (65 Rooms)

Ibis Sydney Darling Harbour (256 Rooms)

Ibis Sydney Olympic Park (144 Rooms)

Mercure Broome (136 Rooms)

Mercure Melbourne Treasury Gardens (164 Rooms)

Novotel Canberra (286 Rooms)

Novotel Sydney Darling Harbour (525 Rooms)

Novotel Sydney Olympic Park (177 Rooms)

Pullman Sydney Olympic Park
(currently managed) (212 Rooms)

Total Rooms (2502)

 

 

 

 

 

 

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