Becoming asset-light: Accor disposes of Orbis and restructures Mövenpick

by | 21 Jan 2020 | Portfolio

Accor is shifting to a more asset-light company profile.

In a bid to become asset-light, Accor recently disposed of its stake in Orbis and announced plans to restructure the Mövenpick brand, two brands the company recently acquired.

Accor recently announced the disposal of its stake in hotel operating company Orbis to AccorInvest as well as a restructuring of the Mövenpick brand.

We reveal more details about Accor’s goal to become asset-light.

Changes at Accor

After acquiring Orbis’ management and franchise business last October for €286m (£240m), the French hotel giant now moved its stake in the operating company to AccorInvest for €1.06b (£890m). This transaction is expected to be completed by the end of Q1, 2020.

Accor also announced plans to restructure Mövenpick hotels’ lease portfolio. A sale and ‘management back’ agreement with HR Group, a German private fund, will result in a €429m (£361m) reduction of Accor’s consolidated debt.

The agreement covers 16 hotel leases in Germany, Switzerland and the Netherlands, of which three properties are currently in the pipeline and will be managed by Accor under a 20-year contract.

Accor goes asset-light

Together with recent disposals of a 5.2% stake in AccorInvest and a 5% stake in Chinese hotel management company Huazhu, Accor now plans to shift its focus to be on shareholder returns and further acquisitions of asset-light hotel companies. As of now, Accor has announced a €1b (£840m) return to shareholders over the next 24 months.

Sébastien Bazin, chairman and chief executive of Accor, said: “Accor has now become a fully asset-light group. By combining a two-year €1b (£840m) shareholder return programme with the pursuit of a targeted acquisition strategy, the group demonstrates the strength of its new model and its ability to rigorously execute its strategic roadmap.”

“We are now focused on the organic growth of our portfolio, the strengthening of our leadership in our key markets, the attractiveness of our brands for our customers and our owners and an unwavering commitment to promoting our values and a distinctive vision of hospitality,” Mr Bazin went on to explain.

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