AccorHotels announced completion of its acquisition of Baar, Switzerland-based Mövenpick Hotels and Resorts on September 3rd, 2018. The acquisition, which was earlier announced in April 2018 will effectively transfer ownership of the Mövenpick brand, and all of its hospitality activities to AccorHotels. Mövenpick was previously owned by Kingdom Holding Company (an investment vehicle of Saudi Prince Alwaleed bin Talal) alongside other partners.
The sale involved a 100% transfer of Mövenpick’s share capital in a cash purchase, and is reported at an enterprise value of US$577.4 million. Mövenpick’s CEO, Olivier Chavy, also announced his departure from the company effective on September 4th.
AccorHotels will leverage Mövenpick’s network of 84 properties (and over 20,000 hotel rooms) to reinforce its footprint in Europe and Asia, and accelerate growth in key regions such as Africa and the Middle East, where the latter hotel group has a strong signed development pipeline. In Africa, Movenpick currently operates in Egypt, Morocco, Tunisia, Ghana, and Kenya. It has three more hotels (and 714 rooms) planned to open in Abidjan, Addis Ababa, and Abuja by 2020.
According to a joint press release by both companies, the Mövenpick brand will find its fit in AccorHotel’s portfolio as a full-service brand, filling the gap between Accor’s midscale Mercure and Novotel brands, and its upper upscale Swissotel, Pullman and MGallery brands.
With the acquisition, Accor is now the largest hotel operator, by room number, in the Middle East and Africa with a count of almost 100,000 hotel rooms (over 400 hotels) currently operational or in the pipeline, in those regions.
AccorHotels has made major moves in the Africa recently, with the establishment of a US$1 billion African investment fund and the acquisition of 50% ownership stake in the South African Mantis Group.