Accor to Sell 30 U.K. Hotels in $921 Million Transaction

Accor signed a $921 million agreement to sell a portfolio of 30 hotels in the U.K. that are operated under its Ibis and Novotel brands to Land Securities, a London-based company which owns and manages properties in England, Scotland and Northern Ireland.

Under the agreement with Land Securities, Accor will continue to operate the hotels under 12-year leases that will be renewable six times, for a total of 84 years, according to Accor. Expenses related to the properties going forward will be assumed by Land Securities, which plans to renovate the hotels.

The Land Securities deal is the second major transaction this month for Accor, which on Feb. 6 sold its stake in Go Voyages, a French online travel distributor, for $364 million.

Accor said the sales are part of its effort to refocus its operations on its core hotel brands, which also include Sofitel, Mercure, Suitehotel, Red Roof Inn, Etap Hotel, Formule 1 and Motel 6.