AccorHotels, Algeciras to Buy Chilean Hotel Group Atton
- May 16, 2018
Paris-based AccorHotels and Chilean group Algeciras have agreed to acquire Atton Hoteles, which operates 10 hotels across Chile, Peru, Colombia and one in Miami, for $105 million.
The deal, expected to be completed during the second half of 2018, calls for AccorHotels to purchase 100 percent of the management company that operates Atton and its 2,259 rooms. Algeciras will acquire 80 percent of the property company that owns Atton and AccorHotels will get the remaining 20 percent. AccorHotels will have an option to sell its 20 percent to Algeciras after five years.
Atton, founded in Chile in 2000, caters to business travelers in the mid-scale and upscale hotel segments. The company has three hotels under development.
The acquisition expands AccorHotels’ footprint in Latin America, where it has 335 hotels in operation and 166 under development. The company was attracted to Atton Hoteles for its presence in Latin American fast-growing markets like Chile and Peru.
“We are delighted to have come to this strategic agreement with Algeciras. With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations,” Patrick Mendes, CEO of AccorHotels for South America, said in a prepared statement.
An investor and operator, AccorHotels is a global travel and lifestyle group that offers guests experiences in more than 4,300 hotels, resorts and residences, as well as in more than 10,000 of private homes. The company operates in 100 countries and has brands in the luxury, midscale, boutique, economy and regional segments. Luxury brands include Raffles, Sofitel Legend, Fairmont, onefinestay, Rixos, MGallery by Sofitel, Pullman, Swissôtel and 25Hours Hotels. Popular midscale and boutique brands include Novotel, Mercure, Mama Shelter and Adagio. Regional brands include Grand Mercure, The Sebel and hotelFI. Economy brands include Jo&JOE, ibis, ibis Styles and ibis budget. AccorHotels also owns John Paul, a leader in concierge services.
The Atton hotels being acquired will be co-branded with AccorHotels brands initially, before being fully rebranded to Pullman, Novotel, MGallery and Mercure.
AccorHotels expansion moves
The Latin American purchase comes just weeks after AccorHotels entered into an agreement to acquire Switzerland’s Mövenpick Hotels & Resorts for approximately $560 million. AccorHotels will purchase the international upscale hotel management company from Mövenpick Holding and Kingdom Holding in an all-cash $560 million transaction later this year. Mövenpick, which has been in the lodging business since 1973, manages 84 hotel properties encompassing more than 20,000 guestrooms across 27 countries.
Nearly three years ago, the hotel group made a major purchase, acquiring three iconic hotel brands, Fairmont, Raffles and Swissôtel—in a cash-and-share deal valued at a reported $2.9 billion, from FRHI Holdings Ltd. That acquisition comprised 155 hotels and resorts in 34 countries, with 40 development properties. Included in the portfolio were noteworthy properties such as Raffles Singapore, The Savoy in London, Shanghai’s Fairmont Peace Hotel, Fairmont San Francisco and the Fairmont Grand Del Mar in San Diego.
Images courtesy of AccorHotels