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FinanceAccor signs binding deal to sell Essendi stake for up to €975m
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Accor has signed a definitive binding agreement to sell its approximately 30.7% stake in hotel owner and operator Essendi (formerly AccorInvest) to a consortium comprising Blackstone and Colony IM. The total consideration is up to €975m ($1.1bn), including about €675m payable at closing and a possible earn-out of up to €300m. The deal, first disclosed via an MoU in April, involves converting Essendi's hotel portfolio into franchise contracts with an average term of 20 years, with all hotels continuing to operate under Accor brands. Accor stated the move aligns with its strategy to simplify and strengthen its business model. Completion is expected in Q4 2026, subject to regulatory approvals. Accor plans to return most proceeds to shareholders via an additional €500m share buyback program.
Source report
By: Umesh Ellichipuram Source: Hotel Management Network Reading time: 2 min
Accor has signed a definitive binding agreement to sell its approximately 30.7% shareholding in hotel owner and operator Essendi, formerly known as AccorInvest.
The agreement formalizes a deal first disclosed in April, when Accor signed a memorandum of understanding (MoU) to divest its stake in Essendi to a consortium comprising Blackstone and Colony IM.
Key Terms of the Deal
- Total consideration: Up to approximately €975 million ($1.1 billion)
- Payable at closing: Approximately €675 million
- Potential earn-out: Up to €300 million
Strategic Rationale
The transaction aligns with the MoU, under which Essendi's hotel portfolio will be gradually converted into franchise contracts. Accor described the move as being "in line with the group's strategy to simplify and further strengthen the resilience and predictability of its business model."
All hotels in the portfolio will continue to operate under Accor brands, with the new franchise arrangements having an average term of 20 years.
Accor stated that the transaction is consistent with the recurring EBITDA trajectory presented at its Capital Markets Day on June 27, 2023.
Timeline and Regulatory Approvals
Completion of the sale is expected in the fourth quarter of 2026, subject to standard regulatory and antitrust approvals.
Use of Proceeds
As previously stated, once the deal is completed, Accor plans to return most of the disposal proceeds to shareholders through an additional €500 million share buyback programme.
Recent Developments
Earlier this month, Accor partnered with Trust Contracting and Real Estate Investment Company to develop a new ibis hotel in Sidi Kerir, located on Egypt's North Coast. The 200-room property is due to open in the final quarter of 2029.
"Accor signs binding deal to sell Essendi stake for up to €975m" was originally created and published by Hotel Management Network, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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Accor signs binding deal to sell Essendi stake for up to €975m