AXA Real Estate Investment Managers (“AXA Real Estate”) announces that, on behalf of its clients, it has completed the sale of a portfolio of 11 hotels to Accor for a consideration of CHF 219 million (approx. €180 million). Accor has acquired the portfolio on behalf of its HotelInvest business.
Having acquired the portfolio from Accor on behalf of its clients in 2008, AXA Real Estate subsequently undertook a development and refurbishment plan which allowed supporting the performance of the hotels.
Accor has operated the 1,592 rooms portfolio since 2008 under variable-rent leases and the following brands: Ibis New (5 hotels), Ibis Budget (2 hotels), Novotel (3 hotels) and MGallery (1 hotel).
With a hotel portfolio valued at €500 million in 2007, AXA Real Estate has built up an asset base of over €2 billion across Europe. The portfolio includes all hotel categories, from budget to luxury.
Pierre Vaquier CEO at AXA Real Estate, commented: “This transaction demonstrates our ability to benefit on our significant hotel experience to identify opportunities to create value for our clients. In 2008, we acquired, on behalf of our clients, this portfolio at an advantageous point in the market cycle and then implemented development and refurbishment plan which would both increase the operational performance of the assets by making them more appealing to hotels’ customers. We have now crystallised that value for our clients through a disposal at a time when we can also benefit from the strength of the Swiss Franc ”.
Source: AXA Real Estate