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Accor buys controlling stake in German hotel company in £80m deal

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Accor buys controlling stake in German hotel company in £80m deal
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Accor has bought a controlling stake in 52 German hotels in a deal worth €127m (£83.5m).

It brings the number of hotels operated by Accor in Germany to 331.

Accor said in a statement: “The transaction is being carried out at a time when the German economic environment is favourable and the hotel industry is showing a very clear improvement.”

The 52 hotels acquired generate turnover in the region of €300m (£197m) and are expected to report 2007 earnings before interest, tax, depreciation and amortisation of around €16m (£10.5m).

As part of the deal, Dorint, which owns 93 hotels in Germany and which Accor already had a 34% stake in, will split itself into two new companies.

Accor is paying €52m (£34.2m) to acquire a controlling stake in the first of these newly created entities, which controls 52 hotels.

Within the first six months of 2007, Accor will then spend a further €75m (£49.3m) buying out the minority interests in the newly created company, giving it a 90% stake.

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By Chris Druce

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