The 85 hotels are being sold to a new, private hotel franchisee operator. The 85 hotels have an asset value of €594 million and are mostly midscale and economy hotels. The new entity will be dual owner by AccorHotels (30%) and Eurazeo (70%). The hotels are located in France, Spain, Italy, Portugal, Germany, Austria, the Netherlands, and Belgium. The 85 hotels will remain under their AccorHotels flag, but will undergo renovations estimated at €100 million, in addition to the €358 million purchase price.The sale and creation of the new company was done in order to make AccorHotels more “Asset-Medium.”
Italy Sees Growth in Occupancy and Hotel Transactions
In 2013, Italy had the third largest hotel market in the world according to Italy’s National Institute for Statistics. After the great recession of 2008, Italy struggled to get its occupancy rates up but saw a 3.8% increase in 2011 according to STR Global. A slight dip in RevPAR in 2012 saw another rise in 2013 due to domestic travel. This increase in travel and hotel occupancy has spurred the growth of the number of hotels, especially in the upscale and upper-upscale categories, which often have more rooms than one and two star hotels. Since 2014, international arrivals have increased by 5% and are predicted to overtake domestic travel in the coming years. This international travel is partially due to disorder in Northern Africa which is rerouting many tourists to parts of southern Italy like Sicily and Apulia. With new sophisticated tourists, the number of chains/branded hotels has also increased. In May of 2015 it was estimated there were over 5,000 branded rooms added to the market over the past three years. Many of these rooms are in the luxury and upper-upscale segments in the south and the midscale to luxury segments in northern cities like Milan. These additional rooms, according to Real Capital Analytics, have been a part of over €775 million in new transactions. Included in that figure is Villa Vignamaggio (pictured), in a province of Florence, which was sold at €970,000. It is predicted then number of rooms in tourism-driven cities like Roman, Venice, Florence, and Milan will continue to grow over the next few years.
