Sale of two MGallery hotels in Germany and the Netherlands under a ?44m Sale & Variable lease-back agreement
As part of its asset management strategy, Accor announces a sale and lease back agreement concerning the MGallery Mondial Am Dom in Cologne (207 rooms) for ?20.5m and the MGallery Convent Hotel in Amsterdam (148 rooms) for ?23.5m. The transaction includes a renovation program of ?12.4m, ?7.3m of which will be invested by the buyer.
Both hotels will remain operated by Accor through a 15 year commercial lease agreement that will be renewable at Accor?s option. The turnover rent averages 21.5% of the annual revenue of the hotels. Based on 2011 revenue, the net variable rent would have reached ?3m last year. Insurance costs, real estate taxes and structural capital expenditures will now be paid by the new owner.
The buyer is the hotel real estate investment fund of Internos Real Investors, a major player in the real estate and hotel sector in Europe.
This new transaction confirms the Group?s ability to continue to actively manage its assets, in line with its?asset-management strategy of reducing adjusted net debt by ?2.2 billion by 2015.