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Accor parted with 158 hotels

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On the 22nd of September Accor hotel chain announced a deal to sell a number of budget hotels owned by the chain. All hotels, from the management of which Accor has refused, are located in France. A French investment fund acted as a buyer of budget hotels. The amounted of deal figured up to over 270 million euros.

The major part of the budget hotels, offered for sale by Accor, is represented primarily with the budget Formule 1 chain. Accor has recently carried out re-branding of the popular hotel chain in France. Today, former Formule 1 hotels are promoting their services under the brand name HotelF1.

The total number of hotels of the HotelF1 chain, which will switch the managing company, is 158. This transaction will enable Accor, one of the world's largest hotel companies, to pay part of the debt of the corporation.

Analysts believe that the deal on the selling transaction of budget hotels by Accor indicates a revival of hotel real estate market and serves as a positive sign, showing relative improvement in the sphere of hotel investments. As a result of this evaluation, quotations of securities of Accor on the Paris Stock Exchange rose by 5%.

Formule 1 - is a network of extreme budget hotels. Due to the minimal amount of amenities the cost of room in the chain starts from 29 euros per day – and it is one of the lowest rates for hotel chains. The first hotel of Formule 1 was opened by Accor 25 years ago. Today the total number of hotels in Formule 1 chain - more than 360, most of them located in France. Thus, as a result of the transaction, Accor has lost almost the half of Formule 1 chain. However, hotels in Brazil, Germany, Japan, Belgium and other countries are still operated by the corporation.

Date: 22/09/2009