AccorHotels has agreed to purchase Movenpick Hotels & Resorts for $567 million, the French hotel giant announced Monday.
The acquisition is expected to boost AccorHotels' earnings and accelerate its growth in emerging markets around the world.
Switzerland-based Movenpick currently operates 84 hotels comprising more than 20,000 rooms in over two dozen different countries. However, the company's presence is the strongest in Europe and the Middle East.
Movenpick is also eyeing expansion with 42 additional hotels scheduled to open by 2021. The new properties will grow the company's portfolio significantly in the Middle East, Africa and Asia-Pacific.
"With the acquisition of Movenpick, we are consolidating our leadership in the European market and are further accelerating our growth in emerging markets, in particular in Middle East, Africa and Asia-Pacific," said AccorHotels Chairman and CEO, Sebastien Bazin in a statement. "The Movenpick brand is the perfect combination of modernity and authenticity and ideally complements our portfolio. Its European-Swiss heritage is a perfect fit with AccorHotels."
"By joining the Group, it will benefit from AccorHotels' power, particularly in terms of distribution, loyalty-building, and development," he added. "This transaction illustrates the strategy we intend to pursue with the opening up of AccorInvest's capital: to seize tactical opportunities to strengthen our positions and consolidate our leadership, as well as leverage our growth."
The acquisition is scheduled to be completed in the second half of 2018.
AccorHotels recently announced it has opened properties in 100 countries around the world and has as many as 870 properties in development. Meanwhile, the company's luxury brand SO/ is in the midst of doubling its global footprint.
The latest move comes on the heels of AccorHotels' recent acquisitions of FRHI (Fairmont Raffles Hotels International) Hotels & Resorts, luxury vacation rental company onefinestay and search and reservation solutions provider Gekko.
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