Accor Buys Mirvac Hotels for $254 Million to Grow in Australia
Accor SA (AC), owner of the Novotel lodging brand, agreed to pay 195 million euros ($254 million) for Mirvac Group’s hotel management business to expand in the Asia-Pacific region.
The transaction will add 48 hotels, increasing Accor’s total in Australia and New Zealand to 241, the Paris-based company said in a statement today. The addition of 6,100 rooms will help the hotelier toward its worldwide room-opening target for the next two years of 40,000 a year.
“This operation is a major success in a high-growth market,” Accor Chief Executive Officer Denis Hennequin said. “I am confident in our capacity to reach our objective.”
Accor, Europe’s largest hotel group, has exited catering and casino businesses to focus on hotels. To cut debt, the French company is selling hotel freeholds, while signing agreements to operate or franchise most of them.
Accor rose as much as 3.2 percent in Paris trading and was up 2.7 percent at 18.30 euros as of 10:39 a.m. Mirvac Group (MGR) shares gained 1.6 percent to A$1.27 in Sydney.
Accor said it will pay 149 million euros for Mirvac Hotels & Resorts. Together with Singapore real-estate developer Ascendas, it will also acquire Mirvac’s 49.2 percent stake in a fund that owns 7 percent of the hotels for 46 million euros.
Most of the hotels are located in Australia and four are in New Zealand. They will be integrated into Accor’s upscale and midscale brands. The French company said the purchase will give it more than 500 hotels in the Asia-Pacific region.
To contact the reporter on this story: Armorel Kenna in Milan at email@example.com