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Covivio announces the signing of a memorandum of understanding with AccorInvest relating to the consolidation of the ownership of properties and businesses of jointly held hotels, in line with the conditions defined when entering into exclusive negotiations in November 2023. The operation should be finalized in the last quarter of 2024.
Today we are taking a significant new step in the evolution of our partnership with AccorInvest. This signature thus contributes to the development of Covivio in the hotel industry and offers us the opportunity to mobilize all our real estate and hotel expertise. By repositioning a large part of the portfolio, we intend to strengthen our ability to act directly on the performance of the assets, and thus benefit from significant growth potential.
comments Tugdual Millet, General Director of Hotels, Covivio.
A value-creating hotel exchange operation
For the record, Covivio, via its subsidiary Covivio Hotels [1], owns the premises of 54 hotels rented to the AccorInvest group with variable rent based on turnover, under long-term leases. The AccorInvest group owns and operates the business of these hotels, and has signed long-term management contracts with the Accor group.
The protocol concerns the acquisition by Covivio Hotels of 24 businesses [2] – thus allowing the consolidation of these hotels which will be held in property and assets by Covivio Hotels – in return for the transfer to AccorInvest of the properties of 10 other hotels which will then be held in property and funds by AccorInvest. The agreed value of the properties transferred to AccorInvest represents €208 million [3] and the agreed value of the business purchased by Covivio Hotels represents €266 million [4]. Based on 2023 figures, the amount of annual rents for the assets sold to AccorInvest represents €11 million and the EBITDA of the business acquired by Covivio Hotels represents €31 million.
The operation thus allows Covivio Hotels to acquire business assets located in areas with high tourist attractiveness and benefiting from significant value creation potential through repositioning and management optimization work. Some of these hotels will remain under Accor brands (under management or franchise contracts), others will undergo a brand change.
This operation marks Covivio’s continued development in hotel real estate, towards a more diversified model (lease assets, property assets and funds).
A new stage also initiated for hotels held in joint ventures
Covivio Hotels is also indirectly the owner and asset manager of the premises of 60 other hotels leased to AccorInvest and held through 2 joint ventures, created between 2010 and 2014: one owned 80% by Crédit Agricole Assurances and 20% by Covivio Hotels, and the other held by Caisse des Dépôts et Consignations, Société Générale Assurances and Covivio Hotels.
The protocol concerns the acquisition by Covivio Hotels and its partners of 19 businesses [5] for these 2 joint ventures (thus allowing the consolidation of these hotels which will be held in property and funds by Covivio Hotels and its partners) in return for the transfer to AccorInvest of the properties of 6 other hotels which will then be held in property and funds by AccorInvest .
In total, the consolidation operations on Covivio Hotels and the joint ventures show a value of €393 million for hotel properties sold by Covivio Hotels and its partners. [6], equivalent to that of the business assets held and operated by the companies whose securities will be acquired. At the end of the operation, Covivio Hotels and its partners will have regrouped 43 hotels and AccorInvest 16 hotels.
About Covivio:
Drawing on its partnership history, its real estate expertise and its European culture, Covivio is inventing the user experience of today and designing the city of tomorrow. A real estate player preferably on a European scale, Covivio gets closer to end users, captures their aspirations, combines working, traveling, living, and co-sells living spaces. A leading European operator with €23.1 billion in assets, Covivio supports companies, hotel brands and territories in their challenges of attractiveness, transformation and responsible performance.
Building well-being and lasting connections is Covivio’s Raison d’être, which expresses its role as a responsible real estate operator with all of its stakeholders: clients, shareholders and financial partners, internal teams. , communities, future generations. Furthermore, its lively approach to real estate opens up prospects for exciting projects and career paths for its teams.
The Covivio share is listed on compartment A of Euronext Paris (FR0000064578 – COV), admitted to the SRD and is included in the composition of the MSCI, SBF120, Euronext IEIF “SIIC France”, CAC Mid100 indices, in the real estate reference indices European “EPRA” and “GPR 250”, as well as in the ESG indices FTSE4 Good, CAC SBT 1.5°C, DJSI World and Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext® CDP Environment France EW, Stoxx ESG, Ethibel and Gaïa and benefits from EPRA BPRs Gold Awards recognition and ratings (financial reporting and sustainable development), CDP (A), GRESB (90/100, 5-Star, 100% public disclosure), ISS- ESG (B-) and MSCI (AAA).
[1] 52.2% owned and controlled by Covivio. The figures in this press release are presented as Covivio Hotels’ share.
[2] Via the acquisition of shares of companies owning and operating businesses
[5] Via the acquisition of shares of companies owning and operating businesses
[6] Rights included, 100%
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