AccorHotels and Chilean group Algeciras announce have signed an agreement with the shareholders of Atton Hotels in order to acquire the company.
Under the terms of the agreement, AccorHotels will acquire 100 per cent of the management company that operates 11 Atton hotels (2,259 rooms), plus three
hotels under development, across Chile, Peru, Colombia and Florida, USA. In addition, AccorHotels will acquire 20 per cent of the property company that owns
these assets, with the remaining 80 per cent being bought by Algeciras.
“We are delighted to have come to this strategic agreement with Algeciras. With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations,” said Patrick Mendes, CEO of AccorHotels for South America.
Founded in Chile in 2000, Atton Hotels caters to midscale and upscale business travelers. 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 in the midterm.
Total cash consideration for AccorHotels will be US$105 million or c. €89 million at the current exchange rate, including €67 million for the operating company,
and €22 million for the 20 per cent stake in the real estate arm, reflecting post synergies and pipeline 2020e EV/EBITDA of respectively 10X and 9X. The transaction will have an accretive impact on Group earnings from the first year. AccorHotels will have a put option to sell its 20 per cent in the property company to Algeciras after five years.
This acquisition further consolidates the current footprint of AccorHotels in Latin America, where it has 335 hotels operating and 166 under development, while strengthening its presence in fast growth markets such as Chile and Peru.
Leave a Reply