The board of Accor, the largest hotel operator in Europe, has approved
plans to separate its property arm HotelInvest.*
According to a statement from the company, at a meeting on Thursday
the board of directors approved the deal which was announced in July last year.
The move will see Accor create a dedicated subsidiary for Hotelinvest
to allow third-parties to invest in the structure. This will free up
capital for parent company Accor to develop its existing business and
look for new growth opportunities.
Accor has been making acquisitions to reach and retain new guests as
it responds to pressure from online rivals such as Airbnb that are reshaping the hotel market.
Accor’s first quarter results, published last month, showed early
signs that its home market of France is beginning to recover after
a tough period due to terrorism and heightened competition from the
likes of Airbnb.
Average revenue per hotel room was positive in France for the first
time since 2015 during the first three months of the year.
First quarter revenue rose 35 percent year on year to €425m, which represented a 7.4 percent like-for-like increase, stripping out acquisitions and currency effects.
This post has been amended to clarify the deal was confirmed by the board on May 19.