As per the agreement, AccorHotels will acquire 100% 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% of the Property Company that owns these assets, with the remaining 80% being bought by Algeciras. Atton Hotels was founded in Chile in 2000 and caters to midscale and upscale business travellers. In order to capitalise 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 Û89 million at the current exchange rate, including Û67 million for the operating company, and Û22 million for the 20% 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% in the PropCo to Algeciras after five years.
This acquisition further consolidates the current footprint of AccorHotels in Latin America, where the Group has built leadership for many years, with 335 hotels operating, and 166 under development, while strengthening its presence in fast-growing markets such as Chile and Peru.
Patrick Mendes, CEO of AccorHotels for South America stated: ÒWe 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.Ó
The transaction is subject to regulatory approvals. It should be completed during the second half of 2018.
