AccorInvest Group SA, one of the world’s largest hotel owners, has put a series of assets up for sale in Europe and Latin America to reduce its debt, according to people familiar with the matter.
(Bloomberg) — AccorInvest Group SA, one of the world’s largest hotel owners, has put a series of assets up for sale in Europe and Latin America to reduce its debt, according to people familiar with the matter.
The group, which has more than 750 hotels operated by Accor SA, is looking to raise about €2 billion ($2.1 billion) from sales including hotels under the Sofitel brand in Paris to repay creditors, the people said, asking not to be named discussing private information. It will also talk to lenders to amend the terms and extend the maturity of €4 billion of debt coming due in 2025, three of the people said.
The firm is working with Societe Generale SA on the sale of the Paris hotels, two of the people said. It has also hired other brokers and banks to advise on selling five Ibis hotels in the UK, as well as portfolios of assets in Germany and Latin America, a hotel in the Netherlands and a Sofitel in the central and eastern Europe region.
It’s working with Rothschild & Co. ahead of the talks with creditors, although there is no firm mandate yet, the people said. The investment bank advised the group in 2021 when it restructured €4.5 billion of debt.
Spokespeople for AccorInvest, Societe Generale and Rothschild declined to comment.
As part of the 2021 restructuring deal, AccorInvest obtained a state-guaranteed loan of €477 million from its lenders, while existing shareholders provided a capital increase for the same amount.
Its shareholders now include Saudi Arabia’s Public Investment Fund and Singapore’s GIC Pte, after Accor Group sold 58% of AccorInvest for €4.6 billion in 2018. Accor also runs hotels under brands such as Fairmont, Novotel and Pullman.
–With assistance from Alexandre Rajbhandari.
(Updates with detail of UK portfolio sale.)
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