Europe’s largest hotelier Accor said it plans to sell 48 hotels in Europe for € 376 million (US $ 466 million) in a bid to cut its debt and secure growth over the next few years.
Due to be completed by the end of the year, Reuters reported that the deal would add around € 3 million to the hotel company’s pretax profit from 2010.
Accor said that it would continue to manage the hotels under a 12-year variable lease, renewable six times. The average annual rent will be 19% of the hotels’ revenue, with minimum guarantee of € 23 million for 2011 and 2012.
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The company plans to sell a total of 450 hotels over the next three years to help fund growth after spinning off its cash-rich services unit Edenred earlier in the year.
Accor wants to be Europe’s largest franchiser and it is aiming to take the world number three spot by 2015. It currently follows the InterContinental, Marriott, Hilton and Starwood chains in fifth place.
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