Foncière des Régions and AccorHotels have committed to a renewed real estate partnership, with a bipartite deal that extends a relationship formed more than 10 years ago.
The agreement concluded between Foncière des Régions and AccorHotels has two real estate components. The first is the extension of the term of 80 hotel leases (initially expiring in 2017 and 2018) for a further period of 12 years on the same rental terms. The renewal will extend the average term of leases on the hotel portfolio owned by Foncière des Régions and operated under the AccorHotels banner to 13.4 years.
Foncière des Régions has also undertaken to sell to HotelInvest, a subsidiary of AccorHotels, a portfolio of 43 hotels for €281 mln, or approximately 20% of the group share of the Accor portfolio owned by Foncière des Régions. Located in France, the 43 hotels (4,237 rooms) have been operated under variable leases by AccorHotels since 2005 and 2007, under the ibis budget, ibis, Novotel, Mercure, Pullman and Sofitel brands. Half of the hotels sold are located in towns with fewer than 300,000 inhabitants. These transactions, which will be carried out by the end of June 2016, will be made on the basis of the current appraisal values.
The renewal of the partnership provides a further demonstration of the pertinence and momentum of the Foncière des Régions model, which combines innovative and tailored real estate solutions, visibility over cash flows and constant reinforcement of asset quality. By offering hotel brands all the real estate solutions they need (property investment, property and funds, development, asset management, repositioning, rotation), the group has been able to become the leading force in hotel real estate in Europe.
Foncière des Régions has a broad portfolio of real estate partnerships including AccorHotels, B&B Hotels, Louvre Hotels Group, NH Hotel Group, Motel One and Meininger. Dominique Ozanne, CEO Hotels & Hospitality Management of Foncière des Régions, said: “The continuation of the partnership with AccorHotels is great news. It perfectly validates our real estate partnership model, which allows us to provide long-term support to hotel brands by providing all the real estate solutions they need to tailor their offer to their customers’ expectations and to expand in Europe”.
Source: Foncière des Régions
