(Boursier.com) — Covivio announces the signing of a memorandum of understanding with AccorInvest relating to the consolidation of the ownership of properties and business of hotels held jointly, in line with the conditions defined during the entry into exclusive negotiations in November 2023. The operation should be finalized in the last quarter of 2024.
“Today we are taking a significant new step in the evolution of our partnership with AccorInvest. This signature thus contributes to the development of Covivio in the hotel industry and offers us the opportunity to mobilize all of our real estate and hotel expertise. By repositioning a large part of the portfolio, we intend to strengthen our capacity to act directly on the performance of the assets, and thus benefit from significant growth potential”, comments Tugdual Millet, General Manager Hotels, Covivio.
A value-creating hotel exchange operation
As a reminder, Covivio, via its subsidiary Covivio Hotels, owns the premises of 54 hotels rented to the AccorInvest group at variable rent based on turnover, within the framework of long-term leases. The AccorInvest group owns and operates the business of these hotels, and has signed long-term management contracts with the Accor group.
The protocol concerns the acquisition by Covivio Hotels of 24 business assets – thus allowing the consolidation of these hotels which will be held in property and funds by Covivio Hotels – in return for the transfer to AccorInvest of the property of 10 other hotels which will then be held in buildings and funds by AccorInvest.
The agreed value of the premises sold to AccorInvest represents 208 ME and the agreed value of the business purchased by Covivio Hotels represents 266 ME. Based on 2023 figures, the amount of annual rents for the assets sold to AccorInvest represents 11 ME and the EBITDA of the business acquired by Covivio Hotels represents 31 ME.
The operation thus allows Covivio Hotels to acquire business assets located in areas with high tourist attractiveness and benefiting from significant value creation potential through repositioning and management optimization work. Some of these hotels will remain under Accor brands (under management or franchise contracts), others will undergo a brand change.
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