Accor SA, Europe’s largest hotelier has said it will be selling 48 hotels to units of Credit Agricole SA and Fonciere des Regions SA for US$465 million to dispose of some real estate holdings.
Accor will continue to run the hotels, the Evry, France- based company said in a statement.
The sale consists of 31 properties in France, 10 in Belgium and seven in Germany, operated under the Novotel, Suite Novotel, Ibis and Etap brands.
Accor is planning to dispose 450 hotels in the next three years amid a projected recovery in property values.
The sale will help the company to cut debt and will contribute about 3 million euros a year to profit before tax.
The deal includes a 47.6 million-euro renovation program, with 33 million euros to be financed by the buyers.The sale will be completed before the end of the year.
