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.
Source: bloomberg.com; To continue reading 'Click Here'.