AccorHotels and Algeciras will buy Chilean hotel group Atton Hoteles SA in a deal that will see the former pay a cash sum of US$105 million.
The French hotelier will take full ownership of the management company that operates 11 Atton hotels, spanning 2,259 rooms, across Chile, Peru, Colombia and Florida. AccorHotels will also buy a 20% stake in the property company that owns the assets, with the remaining 80% to be purchased by Chilean group Algeciras.
The total cash consideration of US$105 million, or roughly €89 million at the current exchange rate, to be paid by AccorHotels will include €67 million for the purchase of the management company and €22 million for the 20% stake in the real estate company, according to a release. The agreement also gives AccorHotels a put option to sell the 20% stake in the property company to Algeciras after five years.
The deal boosts AccorHotels' presence in Latin America, where it has 335 operational hotels and another 166 under development. Atton, which targets business travelers in the midscale and upscale segments, has three hotels under development.
The acquisition is expected to close during the second half of 2018, subject to regulatory approvals.