DRMumbai: AccorHotels and Chilean Group Algeciras has signed an agreement to acquire Atton Hotels. As per the agreement, AccorHotels will acquire 100 per cent of the management company that operates 11 Atton hotels (2259 rooms) across Chile, Peru, and Florida, USA.
Besides, AccorHotels will acquire 20 per cent of the Property Company that owns these assets, the remaining 80 per cent being bought by Algeciras. Atton Hotels was founded in Chile in 2000. The hotels cater to the business travellers on the midscale and upscale segment. It has three hotels under development.
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 €89 million at current exchange rate, including €67 million for the operating Company, and €22 million for the 20 per cent 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 per cent 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 growth markets such as Chile and Peru.
Patrick Mendes, CEO, AccorHotels South America, state, “We are delighted to have entered into 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.” The transaction is subject to regulatory approvals. It should be completed during the second half of 2018.
