Accor Signs Binding Agreement to Sell Stake in Essendi for Up to €975 Million
French hospitality company Accor has signed a binding agreement to sell its approximately 30.7% stake in hotel owner and operator Essendi, formerly known as AccorInvest, for total consideration of up to around €975 million ($1.1 billion). The deal includes an initial payment of about €675 million at closing and a potential earn-out of up to €300 million. The transaction aligns with the memorandum of understanding signed in April 2024, under which Essendi's hotel portfolio will be gradually converted into franchise contracts. Accor emphasized that this move supports its strategy to simplify operations and strengthen business resilience. The hotels involved will continue operating under Accor brands for an average term of 20 years. The deal is expected to close in the fourth quarter of 2026, pending regulatory approvals. Once completed, Accor plans to return most of the proceeds through a €500 million share buyback program.
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Topics: franchising hotel industry real estate investment trusts (REITs)