AccorHotels announces it has signed an agreement with Brazil Hospitality Group and its shareholders, funds managed by GP Investments and GTIS Partners, in order to take over the management of 26 hotels currently owned or managed by BHG, the third-largest hotel company in Brazil.
The deal includes around 4,000 rooms in total. The portfolio includes economy, midscale and upper upscale hotels in Brazil’s major markets, especially in Rio de Janeiro and Sao Paulo, complementing well AccorHotels’ existing network in Brazil, and consolidating the group’s leadership across all segments.
The hotels will undergo major renovation and repositioning works and shall progressively be reflagged until the end of 2019 under AccorHotels brands, including ibis, ibis Styles, ibis Budget, Mercure, Novotel, Mama Shelter, MGallery and Pullman, under long-term management agreements.
The management portfolio will be acquired by AccorHotels for a consideration of R$200 million, or around €60 million at current exchange rate. The transaction is expected to close in quarter four of 2017 and is subject to the approval of the Brazilian antitrust authority.