Paris-based AccorHotels has signed an agreement with Switzerland's Mövenpick Holding and Saudi Prince Alwaleed bin Talals Kingdom Holding to acquire Mövenpick Hotels & Resorts for €482m in cash.

Kingdom Holdings holds a stake of 5.8% in AccorHotels which it took in July 2016 for $3,2bn. Earlier this year the Saudi Arabia based group also sold its stake in the Four Seasons Hotel in Beirut for over $100m including debt, Reuters reported at the time.

According to Accor, the Mövenpick transaction implies a multiple of 14.9 times 2019s estimated EBITDA before synergies including transaction costs, and less than ten times pro forma estimated 2019 EBITDA after run-rate synergies and committed development pipeline. The transaction will have an accretive impact on group earnings from the first year.

"With the acquisition of Mövenpick, we are consolidating our leadership in the European market and are further accelerating our growth in emerging markets, in particular in the Middle East, Africa and Asia-Pacific. The Mövenpick brand is the perfect combination of modernity and authenticity and ideally complements our portfolio. Its European-Swiss heritage is a perfect fit with AccorHotels." said AccorHotels Chairman and CEO Sébastien Bazin. 

"By joining the group, it will benefit from AccorHotels power, particularly concerning distribution, loyalty-building and development. This transaction illustrates the strategy we intend to pursue with the opening up of AccorInvests capital: to seize tactical opportunities to strengthen our positions and consolidate our leadership, as well as leverage our growth."

Accor has revealed that Mövenpick Hotels will benefit from its loyalty program, distribution channels and operating systems, which will help optimise performance. This acquisition further consolidates the current footprint in Europe and the Middle East and accelerates growth notably in key regions where the group has been established for many years, such as Africa and Asia.

The Mövenpick transaction is subject to regulatory approvals but should be completed during the second half of 2018.

Founded in 1973 in Switzerland, Mövenpick Hotels operates in 27 countries with 84 hotels and over 20,000 rooms and has a particularly strong presence in Europe and the Middle East. It plans to open 42 additional hotels by 2021, representing almost 11,000 more rooms, with significant expansion in Mid East, Africa and Asia-Pacific. The group employs over 16,000 people worldwide.

AccorHotels is a world-leading travel & lifestyle group and digital innovator offering unique experiences in more than 4,300 hotels, resorts and residences, as well as in over 10,000 of the most exquisite private homes around the globe. Benefiting from dual expertise as an investor and operator, AccorHotels operates in 100 countries. 

Its portfolio comprises internationally acclaimed luxury brands including Raffles, Sofitel Legend, Fairmont, SO/, Sofitel, one finestay, Rixos, MGallery by Sofitel, Pullman, Swissôtel and 25hours Hotels; the popular midscale and boutique brands Novotel, Mercure, Mama Shelter and Adagio; much-prized economy brands including JO&JOE, ibis, ibis Styles, ibis budget and the regional brands Grand Mercure, The Sebel and hotelF1. 

AccorHotels provides innovative end-to-end services across the entire traveller experience, notably through the acquisition of John Paul, the world leader in concierge services.