GIC, Singapore’s sovereign wealth fund, has signed an agreement to acquire a majority stake in AccorInvest, the world leader in hotel real estate with a current portfolio of 891 hotels. The majority of these hotels are located in Europe, in the economy and midscale segments. This investment will enable GIC to gain exposure to AccorInvest’s large and well-diversified portfolio, with resilient cash flows and attractive opportunities for value creation.
Under the terms of the agreements, AccorHotels would initially sell 55% of AccorInvest to GIC, the Public Investment Fund (PIF), Credit Agricole Assurances, Colony NorthStar and Amundi, and other investors. For AccorHotels, the sale would result in a cash contribution of €4.4bn.
The AccorInvest hotels would be operated by AccorHotels under very-long-term contracts, namely 50 years (including a 15-year renewal option) for luxury and upscale hotels and 30 years on average (including a 10-year renewal option) for hotels in the midscale and economy segments. The management contract terms that have been negotiated between the parties are in line with market practices. The transaction is subject to certain regulatory approvals and will be submitted to the works council and to a shareholders’ meeting of AccorHotels for consultation. It is expected to be finalised in the second quarter of 2018.
