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France's AccorHotels strikes deal to buy Chile hotel group Atton
FRENCH group AccorHotels has agreed to buy the management company behind Chile's Atton Hoteles for around US$105 million, in a deal which AccorHotels said would boost its earnings and strengthen its position in Latin America.
The Atton Hoteles deal marks the latest example of AccorHotels' ambitious takeover plans, and follows its acquisition last month of Movenpick Hotels. AccorHotels will acquire 100 per cent of the management company that operates 11 Atton hotels across Chile, Peru, Colombia and Florida in the United States.
AccorHotels will also buy 20 per cent of the property company that owns these assets, with the remaining 80 per cent being bought by Chilean company Algeciras. AccorHotels will also have an option to sell its 20 per cent in that property company to Algeciras after five years.
AccorHotels, whose portfolio ranges from upmarket brands such as Sofitel to the Mercure and Ibis brands, expected the Atton deal to be completed in the second half of this year. The French group said the Atton takeover would boost its earnings from the first year of the deal being completed. "With Atton's portfolio, AccorHotels will strengthen its leadership position in Latin America," said Patrick Mendes, AccorHotels' South America chief executive, in a statement.
Previous acquisitions under AccorHotels' chief executive Sebastien Bazin, who took over in 2013, include London's Savoy Hotel, The Plaza in New York, the Raffles Hotel in Singapore and Australian hotel group Mantra. REUTERS