AccorHotels acquires Chile's Atton Hoteles

2018-05-16 Tag: AccorHotels

AccorHotels,AccorHotels acquires Chile

 

It hasn’t even been a month since AccorHotels confirmed that it would be buying Switzerland's Mövenpick Hotels & Resorts for an estimated $582 million, but the French hotel company isn’t done with its global M&A push. Casting its eyes on South America, AccorHotels has signed an agreement with the shareholders of Chile's Atton Hoteles to acquire the company.

According to the agreement, AccorHotels will acquire 100 percent of the management company that operates 11 Atton hotels across Chile, Peru, Colombia and Florida. The company has another three hotels under development. In order to capitalize on Atton’s existing brand equity, most of these properties will be co-branded with AccorHotels brands, before being fully rebranded to Pullman, Novotel, MGallery and Mercure properties in the midterm.

AccorHotels will also acquire 20 percent of the property company that owns these assets, the remaining 80 percent being bought by Chilean group Algeciras. AccorHotels will also have an option to sell its 20 percent in that property company to Algeciras after five years.

Total cash consideration for AccorHotels will be $105 million, or approximately €89 million at current exchange rate, including €67 million for the operating company and €22 million for the 20-percent stake in the real estate arm. The transaction will have an accretive impact on group earnings from the first year.



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