Covivio and AccorInvest consolidate hotel portfolio
Some of these hotels will continue to operate under Accor brands, under management or franchise agreements, while others will be rebranded
Covivio has announced that it has signed a memorandum of understanding with AccorInvest to consolidate the ownership of jointly owned hotel operating and property companies.
The memorandum concerns the acquisition by Covivio Hotels of 24 hotel operating companies, allowing the consolidation of these hotels, which will be owned and operated by Covivio Hotels.
This comes in exchange for the transfer of 10 other hotels property companies, which will then be owned and operated by AccorInvest.
The value of the property companies transferred to AccorInvest is €208m (£176m), while the value of the operating companies acquired by Covivio Hotels is €266m (£225m).
Based on 2023 figures, the assets transferred to AccorInvest represent annual rental income of €11m (£9.3m), while the operating companies acquired by Covivio Hotels generate an EBITDA of around €31m( £26.1m).
Covivio stated that the deal is expected to close in the final quarter of 2024 and allows it to acquire operating companies in major tourist areas.
Some of these hotels will continue to operate under Accor brands, under management or franchise agreements, while others will be rebranded.
Tugdual Millet, Covivia CEO, said: “Today marks another important step in our partnership with AccorInvest. The agreement will contribute to Covivio’s development in the hotel sector and gives us the opportunity to draw on the full range of our real estate and hotel expertise. By repositioning a large part of the portfolio, we intend to strengthen our ability to act directly on its performance, thereby leveraging significant growth potential.”
