Accor, a leader in Asia-Pacific, strengthens its position in Australia and New Zealand with the acquisition of Mirvac, a hotel management company Following this transaction comprising of 6,100 rooms (48 hotels) Accor's portfolio in those countries will reach 241 hotels, covering the spectrum of hotel segments.
The acquisition of Mirvac is fully in line with Accor's ambitious development strategy announced last September, which includes a target of 40,000 room openings each year in 2012 and 2013, mostly in an asset-light capacity. This operation also demonstrates Accor's ability to secure its leadership in mature markets, through selective acquisitions. With this transaction, the Group's network in Australia and New Zealand will reach 241 hotels and 32,500 rooms, covering the spectrum of hotel segments and resulting in a strong presence in each.
This operation also demonstrates Accor’s ability to secure its leadership in mature markets, through selective acquisitions. With this transaction, the Group’s network in Australia and New Zealand will reach 241 hotels and 32,500 rooms, covering the spectrum of hotel segments and resulting in a strong presence in each.
“This operation is a major success in a high growth market. With our growth strategy which includes both organic growth and targeted acquisitions such as this one, enabled by our excellent financial situation, I am confident in our capacity to reach our objectives”, said Denis Hennequin, Chairman and Chief Executive Officer for Accor. “With an accelerated growth of our offer, stronger brands, unique operational know-how and a dynamic asset management policy, Accor is today aligned with its ambition to become the global reference in the hotel industry”.
The total amount paid by Accor for this acquisition is €195 million and includes:
- Mirvac Hotels & Resorts, a management company of 48 hotels (inc. 2 owned hotels), representing 6,101 rooms, for €149 million
- A 21.9% stake in the Mirvac Wholesale Hotel Fund (MWHF), an investment vehicle with ownership of 7 of the hotels, for €46 million. Accor and Ascendas, the Singapore real estate developer, are to acquire together Mirvac’s 49.2% stake in MWHF.
The 48 hotels are located mainly in Australia, in key cities such as Sydney, Melbourne, Brisbane and Perth. Four of the hotels are located in New Zealand. The majority of the portfolio will be integrated into Accor’s upscale and midscale brands: Sofitel, Pullman, MGallery, Novotel and Mercure.
