AccorHotels Signs Deals With Brazilian and Turkish Hotel Groups
Paris-based AccorHotels has entered into agreements with both Rixos Hotels and the Brazil Hospitality Group, as the French company seeks to continue its global growth.
AccorHotels has formed a strategic partnership with Rixos, a Turkish hotel company, as part of the French chain's strategy to expand its presence in the upper-upscale and luxury segments of the resort market. Under a long-term joint venture, the two companies will collaborate on developing and managing Rixos branded resorts and hotels worldwide. Rixos currently has 20 properties in its portfolio.
As part of the joint venture, 15 Rixos hotels located in premium resort markets in Egypt, Turkey, Russia, the United Arab Emirates and Europe will be integrated into AccorHotels' sales and marketing platform. In addition, as part of this transaction, Rixos plans to reflag five of its non-resort hotels to AccorHotels brands, which also will be managed by AccorHotels. Currently, Rixos Hotels has two resort properties in its development pipeline, which are scheduled to open by year-end 2018, including a second resort in Dubai.
In a statement announcing the new venture, Sébastien Bazin, CEO and chairman of AccorHotels, which currently has over 4,000 hotels in 95 countries, said, "This new partnership has many benefits for us. It enables us to become a leading resort operator in a growing market and to complement our offer with attractive leisure destinations to our guests and loyalty members."
In the agreement with Brazil Hospitality Group and its shareholders, AccorHotels will take over the management of 26 hotels (representing approximately 4,400 rooms) for US$63 million. BHG, the third-largest hotel company in Brazil, owns or manages 50 hotels in 17 locations.
The 26 hotels run the gamut of economy, midscale and upper-upscale hotels in Brazil's major markets, including Rio de Janeiro and Sao Paulo. The hotels will undergo major renovations and repositioning, and by the end of 2019 will be rebranded within AccorHotels' portfolio, which includes the Ibis, Ibis Styles, Ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman flags.
The transaction is expected to close in Q4 2017 and is subject to the approval of the Brazilian antitrust authority. In a statement announcing the management deal, Sebastien Bazin, chairman and CEO of AccorHotels, said, "Today's Brazil is a land of major opportunities. This transaction is a new milestone in the history of AccorHotels in this country, where we have been a firm leader for decades. It will bring new landmark hotels, as well as an increased brand awareness across all segments. It also anchors a strong and long-term relationship with BHG, one of the largest owners of hotel real estate in Brazil, which will bring incremental growth opportunities going forward."
Alexandre Solleiro, CEO of BHG said, "We are thrilled with the opportunities that this transaction creates for our company, our business partners and our teams. Because 100 percent of the capital generated from this transaction will be reinvested in our owned hotels, we will be able to accelerate the repositioning and performance of BHG as a leading owner of hotels in Brazil. At the same time, we will also be able to better focus our resources and management teams in the development of our business of managing third-party hotels through our owned and licensed brands."