Under the terms of these agreements, Accor is to buy another 13% interest. As a result, Accor will own 30% of Dorint AG. From 2008 to 2010 Accor has a possibility to increase its share by another 25% interest, through a call option exercisable at its own initiative. Accor is expected to be represented at the Supervisory Board of Dorint.
Furthermore, Corporate bodies of Dorint AG have approved a strategic partnership based on franchise contracts and commercial agreements. Under these agreements, all Dorint Hotels will be co-branded as Dorint-Sofitel, Dorint-Novotel and Dorint-Mercure. Sales and Marketing of Dorint will be integrated into the Accor network. The co-branded hotels will benefit from the distribution and sales forces of Accor through its Central Reservation System, Internet Web Site and international recognition of its brands. This will also enable some cost improvements.
Through the agreements Accor will strengthen its position in one of the largest European Market, extending its Sofitel Network by around twenty properties, and at the same time, Dorint will benefit from the commercial integration into Accor network while increasing its financial position.
The implementation of these agreements is subject to the approval of the Competition Authorities.
Over the past five years, Dorint AG has acquired a leading position in the German midscale and upscale market by developing three, four and five-star hotels in all of the country’s main cities. In all, the group operates 93 hotels, of which 77 in Germany. It also has some 20 properties under construction or in development.
Accor already enjoys the leader position of the German market where the group operates 280 hotels under the different brands Sofitel, Novotel, Mercure, Ibis, Etap and Formule 1.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
