The MGallery Mondial Am Dom in and the MGallery Convent Hotel in Amsterdam will remain operated by Accor through a 15 year commercial lease agreement that will be renewable at Accor’s option.
As part of its asset management strategy, Accor announces a sale and lease back agreement concerning the MGallery Mondial Am Dom in Cologne (207 rooms) for 20.5m euros and the MGallery Convent Hotel in Amsterdam (148 rooms) for 23.5m euros. The transaction includes a renovation program of 12.4m euros, 7.3m euros of which will be invested by the buyer.
Both hotels will remain operated by Accor through a 15 year commercial lease agreement that will be renewable at Accor’s option. The turnover rent averages 21.5% of the annual revenue of the hotels. Based on 2011 revenue, the net variable rent would have reached 3m euros last year. Insurance costs, real estate taxes and structural capital expenditures will now be paid by the new owner. The buyer is the hotel real estate investment fund of Internos Real Investors, a major player in the real estate and hotel sector in Europe.
This new transaction confirms the Group’s ability to continue to actively manage its assets, in line with its asset-management strategy of reducing adjusted net debt by 2.2 billion euros by 2015.
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