AccorHotels’s presence in Brazil has been bolstered in a €60 million deal covering the management of 26 hotels.
The portfolio of 4,400 rooms includes economy, midscale and luxury properties in cities including Rio de Janeiro and Sao Paulo.
The transaction with Brazil Hospitality Group, the third largest hotel company in the country, is expected to be completed in the fourth quarter of the year and is subject to the approval of the Brazilian anti-trust authority.
The hotels will undergo major renovation and repositioning before being progressively rebranded by 2019 under AccorHotels brands, including ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman, under long-term management agreements.
The French hospitality giant’s chairman and CEO, Sebastien Bazin, 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.”
BHG CEO, Alexandre Solleiro, added: “We are thrilled with the opportunities that this transaction creates for our company, our business partners and our teams.
“Because 100% 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.”