Accor Sells 30 British Hotels For $952M

Forbes:

French hotel group Accor SA, the owner of the Novotel chain, said Monday it agreed to sell 30 properties to Land Securities Group PLC for 711 million euros ($952.3 million) and entered a development agreement with the British real estate company.

Accor will continue to operate the hotels under 12-year leases, the company said in a statement. The leases are renewable for 84 years.

The development partnership will enable Accor to step up its expansion program in Britain. The transaction will enable Accor to reduce its adjusted net debt by 584 million euros ($760 million), of which 172 million euros ($22.8 million) will be added to the company’s cash reserves.

Shares in Accor barely rose to close at 68.20 euros ($88.75) in Paris trading.