Singapore’s sovereign wealth fund (“SWF”), GIC Private Limited (“GIC”), and a group of investors, including Saudi Arabia’s SWF, the Public Investment Fund (“PIF”), Credit Agricole Assurances, Colony NorthStar, and Amundi among others have signed an agreement to acquire a 55 per cent stake in AccorHotels’ property business arm, AccorInvest. The sale would result in a cash contribution of €4.4 billion for AccorHotels when it is finalised in Q2 2018, subject to certain regulatory approvals. AccorInvest’s 891 hotels would then be operated by AccorHotels under long-term contracts. For most of its hotels that are in the economy and midscale segment, it will be an average 30-year contract (including a ten-year renewal option) and for its upscale and luxury hotels, it will be a 50-year contract (including a 15-year renewal option).
HVS APAC HOSPITALITY NEWSLETTER.