French hospitality giant AccorHotels announced on Monday that it has agreed to acquire Mövenpick Hotels & Resorts from Prince Alwaleed bin Talal’s Kingdom Holding and its partners for a cash amount of CHF 560 mln (€482 mln).
The transaction values the business at nearly 15 times the 2019 forecast earnings before interest, tax, depreciation and amortisation (EBITDA) before synergies and including transaction costs. It is expected to have an accretive impact on group earnings from the first year, Accor said in a statement.
Founded in 1973 in Switzerland, Mövenpick Hotels & Resorts operates in 27 countries with 84 hotels (more than 20,000 rooms) and a strong presence in Europe and the Middle East. Mövenpick Hotels & Resorts also plans to open 42 additional hotels by 2021, representing almost 11,000 rooms, with significant expansion in the Middle East, Africa and Asia-Pacific. The group employs more than 16,000 people worldwide.
Sébastien Bazin, Chairman and CEO of AccorHotels, said, '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.'
Prince Alwaleed bin Talal’s Kingdom Holding has a 5.7% stake in Accor.
The transaction is expected to be completed during the second half of 2018.