PARIS—Accor has entered into a definitive agreement to sell an approximately 5% stake in Huazhu Group Limited (HTHT) for $451 million. Accor will keep an approximately 5% stake in Huazhu, and Chairman and CEO Sebastien Bazin will remain on the board.
This transaction, which was conducted in full cooperation with Huazhu and its founder and Chairman Qi Ji, allows Accor to crystallize the value created from the implementation of the partnership between both groups in January 2016. Over the period, the value of Accor’s initial investment in Huazhu has been increased by 4.5 times.
Accor and Huazhu will continue to develop their partnership and growth dynamic initiated four years ago, which has enabled the openings of 200 economy and midscale hotels in China, mainly under the Ibis, Novotel and Mercure brands. An additional 250 properties in the pipeline are scheduled to open over the next three years.