Accor PR:
ACCOR : to sell the Sofitel Paris Arc de Triomphe under a 69 million Sale and Management-Back agreement
Press release
Paris, July 28, 2011
As part of its ongoing asset-right strategy, Accor announces the sale of the Sofitel Arc de Triomphe in Paris, under a sale and management-back arrangement, based on an enterprise value of 69 million (556,000 pre room).
The hotel will be sold to a consortium of French private investors for 44 million. The buyer has committed to financing renovation work for an additional 25 million. The hotel will remain open while the work is being carried out.
Accor will continue to run the hotel under a long-term management agreement.
This disposal confirms the Groups ability to pursue its current 1.2 billion1 asset management program, which includes 35 sale and management-back transactions to be carried out in the period 2011-2012, mainly concerning Sofitel and Pullman units.
It definitely needs the renovation work.