French hotel magnate AccorHotels is bolstering its portfolio of properties in South America, having signed an agreement to acquire Atton Hoteles in partnership with Chilean company Algeciras.
The arrangement will see AccorHotels take on 100% of the management of Atton Hoteles, which operates hotels in Chile, Peru, Colombia and Florida in the USA. AccorHotels will also acquire 20% of the property company which owns the assets, with the remaining 80% bought by Algeciras.
Atton Hoteles caters for the business traveller on the midscale and upscale segment and has three hotels under development. The properties will be co-branded with AccorHotels brands, rebadged as Pullman, Novotel, MGallery and Mercure in the midterm.
The transaction is valued at US$105 million and further consolidates the current footprint of AccorHotels in Latin America, where the group has built leadership for many years, with 335 hotels in operation and 166 under development.
“We are delighted to have come to this strategic agreement with Algeciras. With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations,” said AccorHotels CEO for South America, Patrick Mendes.
Subject to regulatory approvals, the acquisition is earmarked for completion in the second half of 2018.