|Paris, May 28, 1999 - Accor, in association with the two
American investment funds Colony and Blackstone, has undertaken to acquire
the hotel sector of CGIS, a Vivendi subsidiary. Accor will hold 30%
of the capital of the new company, set up jointly with its two partners,
and will provide management for its establishments.
The operation covers 52 hotels (3,160 rooms) mostly under the brands Demeure and Libertel, of which 8 are under management agreement and 4 are associated hotels. They are essentially 3* to 4* luxury establishments. Annual turnover is FRF 800 million (EUR 122 million).
34 of the Libertel hotels are located in Paris, 5 in the provinces and 1 in Brussels. These charming, middle-of-the-range hotels will continue to be run under their existing name and will be associated with the Mercure network.
8 Demeure luxury hotels, of which 5 are located in Paris, such as the "Astor" and "Le Parc", and 3 elsewhere in Europe, the "Grand" in Amsterdam, the "Hotel d'Angleterre" in Geneva and "47 Park Street" in London, will retain their names and will be associated with Sofitel.
Colony is a private investment fund based in the United States, specialising in property, and has invested over US$ 5 billion since it was set up in 1991. Colony moved into France at the end of 1997 and since has invested some of its resources in property with an overall value of FRF 2.5 billion. Colony recently acquired a majority in Lucia, a Paris based company. It has offices in Los Angeles, New York, Fort Worth (Texas), Kohala Coast (Hawaii), Singapore and Paris.
Blackstone, an investment fund, has invested US$ 6.8 billion in property assets in the United States and Europe, especially in office buildings and higher class hotels, and has interests in such cities as Chicago, Dallas, Los Angeles, New York, Philadelphia, Boston, Washington DC, San Francisco, London and Paris.
Blackstone made its first French investment in 1996, a 77,000 sq. meter office building which is the headquarters of IBM Europe and IBM France. Blackstone, with Colony, last year purchased the Savoy Group in the United Kingdom.
Accor, the European leader and worldwide group in the universe of travel, tourism and business service, is active in 140 countries with 120,000 associates through its four complementary activities: hotels, travel agencies with Carlson Wagonlit Travel, car rentals with Europcar, and corporate services with Accor Corporate Services.
|Also See:||The Blackstone Group and Colony Capital Make Offer for London's Famed Savoy Hotel / April 1998|
|Host Marriott Completes REIT Conversion and $1.5 Billion Acquisition of 12 Luxury Hotels from Blackstone / Dec 1998|