Accor is selling a 1.5% stake in China-based hotel management company Huazhu for €239m, retaining a 3.3% stake. Accor will continue to be represented at the Group’s Board of Directors.
According to a statement, "This transaction allows Accor to crystallize further value creation of the initial investment while simplifying its balance sheet. Accor and Huazhu will continue to develop their successful partnership and growth dynamic initiated in January 2016".
The partnership between the comanies has led to the development of Accor's economy and midscale brands ibis, Novotel and Mercure in China, with the opening of 300 properties under those brands, to which 200 properties are scheduled to open over the next 3 years.