Brazil Hospitality Group (BHG) and its shareholders have signed an agreement with French group AccorHotels, which will see Accor manage a portfolio of 26 hotels.
AccorHotels will pay BRL$200m ($63m) for the transaction.
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The shareholders are funds managed by GP Investments and GTIS Partners.
BHG is a leading owner of hotel real estate and a hotel management company in Brazil.
Once the transaction is completed, BHG will be operating 20 hotels with 3,700 rooms.
The portfolio managed by AccorHotels includes those of economic, medium and high standard categories in Brazil’s several states including Rio de Janeiro, São Paulo, Pará, Paraná, Rio Grande do Sul, Pernambuco, Mato Grosso, Bahia, Minas Gerais and Maranhão.
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By GlobalDataThis portfolio will be renewed and repositioned until the end of 2019 and will operate under the brands of ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman.
BHG CEO Alexandre Solleiro said: “We are thrilled with the opportunities that this transaction creates for our company, our business partners and our teams. Because 100% of the resources 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.”
Solleiro further said: “In addition, 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 (Soft Inn, Solare and The Capital) and licensed brands (Royal Tulip, Golden Tulip and Tulip Inn).”
GP Investments partner and BHG chairman Rubens Freitas said: “This transaction is one more step in the process of value creation that started when we founded BHG back in 2007, for which GP remains fully committed to.”
AccorHotels chairman & 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 was advised by Avington and Accor by Itaú BBA.
The transaction is expected to be completed in the last quarter of 2017, following approval from the Administrative Council of Economic Defense (CADE).
