AccorHotels’ acquisition spree continues.
Europe’s largest hospitality company announced on Monday it has partnered with Chilean investment group Algeciras to purchase Atton Hoteles, a hospitality group with 11 hotels in Chile, Peru, Colombia, and Florida, for $105 million.
Atton specializes in midscale and upscale hotels that cater to business travelers, and also has three additional hotels under development. Existing Atton hotels will be rebranded eventually to Accor’s Pullman, Novotel, MGallery, and Mercure brands.
In addition to acquiring Atton Hoteles, AccorHotels and Algeciras are investing in Atton’s property ownership company, PropCo, which owns its 11 hotels. AccorHotels will acquire 20 percent, and Algeciras will buy up 80 percent.
AccorHotels is paying €67 million (approximately $80.2 million) for the operating company, and €22 million (approximately $26.3 million) for its real estate company, and the company has the option to sell its 20 percent investment in PropCo to Algeciras after five years. The deal is expected to close during the second half of 2018 and is subject to regulatory approval.
AccorHotels’ investment in Atton is a continuation of the company’s strategy for expansion within the Latin American region, particularly in Chile and Peru. In the region, the company already has 335 hotels in operation and 166 under development, many of them located in Brazil.
“We are delighted to have come to this strategic agreement with Algeciras,” said Patrick Mendes, CEO of AccorHotels for South America said in a statement. “With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations.”
This latest deal comes just weeks after AccorHotels announced its planned $567 million acquisition of Mövenpick Hotels & Resorts.
“I will never be a leader in America because it is taken by five big guys,” Bazin said. “But I will never let the door open to anyone else to be the largest operator elsewhere … When you have a chance to accelerate through leadership and penetrate a market deeper, just do it. When you control the market, you have much better interaction in the digital space.”