AccorHotels has reached an agreement with a unit of the Abu Dhabi Investment Authority to restructure its A$1 billion portfolio of 31 hotels in Australia.
Under the restructuring of the 4,097-room portfolio which was purchased by the Middle Eastern sovereign wealth fund and operated by AccorHotels, the hotel group will convert the triple-net leases of 15 hotels into 50-year management agreements, and extend the management term of one hotel to 50 years.
Additionally, AccorHotels's subsidiary HotelInvest will purchase the remaining 15 ibis and ibis Budget branded properties in the portfolio for A$200 million.
The hotels in the portfolio are located in prime locations in Sydney and Canberra, and they are also spread across city and regional locations in New South Wales, Victoria, Northern Territory, Western Australia and Queensland. The portfolio comprises the Pullman, Novotel, Mercure, ibis, ibis Styles and ibis Budget brands, according to a news release.
As of Dec. 21, US$1 was equivalent to A$1.38.