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Following this transaction comprising of 6,100 rooms (48 hotels) Accor’s portfolio in these countries will reach 241 hotels, covering the spectrum of hotel segments.
The acquisition of Mirvac is fully in line with Accor’s ambitious development strategy announced last September, which includes a target of 40,000 room openings each year in 2012 and 2013, mostly in an asset-light capacity. This operation also demonstrates Accor’s ability to secure its leadership in mature markets, through selective acquisitions. With this transaction, the Group’s network in Australia and New Zealand will reach 241 hotels and 32,500 rooms, covering the spectrum of hotel segments and resulting in a strong presence in each.
“This operation is a major success in a high growth market. With our growth strategy which includes both organic growth and targeted acquisitions such as this one, enabled by our excellent financial situation, I am confident in our capacity to reach our objectives”, said Denis Hennequin, Chairman and Chief Executive Officer for Accor. “With an accelerated growth of our offer, stronger brands, unique operational know-how and a dynamic asset management policy, Accor is today aligned with its ambition to become the global reference in the hotel industry”.
The total amount paid by Accor for this acquisition is 195 million euros and includes:
– Mirvac Hotels & Resorts, a management company of 48 hotels (inc. 2 owned hotels), representing 6,101 rooms, for 149 million euros
– A 21.9% stake in the Mirvac Wholesale Hotel Fund (MWHF), an investment vehicle with ownership of 7 of the hotels, for 46 million euros. Accor and Ascendas, the Singapore real estate developer, are to acquire together Mirvac’s 49.2% stake in MWHF.
The 48 hotels are located mainly in Australia, in key cities such as Sydney, Melbourne, Brisbane and Perth. Four of the hotels are located in New Zealand. The majority of the portfolio will be integrated into Accor’s upscale and midscale brands: Sofitel, Pullman, MGallery, Novotel and Mercure.
“This agreement is an important step for Accor in Australia & New Zealand, 20 years after our debut in these countries. It offers strong synergies with our existing businesses and further enhances our already leading position”, said Michael Issenberg, Chief Operating Officer Accor Asia Pacific. “At a regional level, along with our pipeline of over 200 hotels committed in Asia Pacific, it demonstrates our continued ability to develop our position in this key region for the Group”.
Completion of the deal should occur during the first half of 2012, notably after regulatory approvals. The real estate component of the deal will be managed according to the Accor’s asset management policy.
“Ascendas is always looking out for new investment opportunities to expand its existing portfolio of real estate funds”, said Tan Juay Hiang, Senior Vice President, Real Estate Funds for Ascendas. “The Australian market presents a timely opportunity for us to access a new sector in real estate. Ascendas creates vibrant, integrated communities that extend beyond business space, offering a complete suite of business lifestyle solutions that cater seamlessly to our customers’ work and lifestyle needs, and hospitality is a complementary extension of these integrated solutions. We are pleased to be working with Accor, drawing on its extensive experience as a leading hotel operator in the Asia Pacific region”.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
