Accor Sa, Europe's biggest lodging company, agreed to sell 57 hotels in France and Switzerland for 518 million euros (US$744 million) to focus on running properties rather than owning them.

 

The hotels will be sold to a group including French state lender Caisse des Depots et Consignations and funds run by Axa Real Estate Investment Managers, Paris-based Accor said yesterday. The buyers will finance renovations and Accor will continue to manage the inns, which include Novotel Mercure mid-range properties and Ibis, All Seasons and Etap economy hotels.

 

The sale of 47 hotels in France and 10 in Switzerland will add five million euros to next year's pretax profit, Accor said. Chief Executive Officer Gilles Pelisson has sold assets to boost returns since taking the helm of the company two years ago.

 

The hotels will be managed under the same brands through 12-year variable leases, renewable six times.

 

(Shanghai Daily December 26, 2007)