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Accor sells two hotels in USA for more than £100m

08 January 2007 by
Accor sells two hotels in USA for more than £100m

French hotel chain Accor has sold two of its Sofitel properties in the USA for $225m (£116m) to help cut its debt.

The properties in New York and Philadelphia have been sold to a joint venture, including GEM Realty Capital, Whitehall Street Real Estate Fund and Accor, which was created in March 2006 and already owns six US Sofitel hotels.

Accor will remain a 25% shareholder in the joint venture and will continue to manage the hotel on a 25-year contract under the Sofitel brand.

A statement by Accor said the deal was part of the group's asset management strategy and "completes Accor's transformation of its Sofitel business model for North America with a hotel base operated primarily under management contracts."

The sale should reduce debt by more than €150m (£77.6m) and will help increase the company's 2007 annual profit before tax.

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By Emily Manson

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