AccorHotels has agreed to sell 55% of its hotel real estate business, AccorInvest, for about $5.4 billion to a group of investors that includes Singapore's and Saudi Arabia's sovereign wealth funds.

AccorInvest has 891 hotels, including 324 that are owned outright and 567 controlled through a leasehold interest.

As part of the agreement, AccorHotels will retain 30-year management contracts for economy and midscale hotels, and 50-year contracts for luxury properties.

AccorHotels will use the proceeds to continue its expansion. The company acquired Fairmont, Raffles and Swissotel in 2016 for about $2.7 billion, and later that year bought a stake in Banyan Tree. It bought a stake in boutique chain Mama Shelter in 2014.

Last fall, AccorHotels agreed to acquire half of the Orient-Express brand from French national rail company SNCF Group, and it agreed to acquire Australia hotel company Mantra Group for $930 million.

In the past two years, the company has also made investments in private rental brands – Onefinestay, Squarebreak, Oasis Collections and Travel Keys.

Accor's hotel brands include Ibis, Mercure, Mercure Grand, Pullman, Novotel, Sofitel, Adagio and MGallery.