Accor to Sell L.A.’s Sofitel Hotel

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Lodging giant Accor said it agreed to sell Los Angeles’ Sofitel Hotel as part of a deal to divest itself of a portfolio of six Sofitel hotels in the U.S. for $370 million.


The six hotels with 1,931 rooms in Chicago, L.A., Miami, Minneapolis, San Francisco and Washington D.C. were sold to a joint venture comprised of GEM Realty Capital, Whitehall Street Global Real Estate and Limited Partnership 2005. Accor will maintain a 25 percent interest in the hotels by participating in the joint venture.


Paris-based Accor also will continue to manage the hotels under Sofitel brand name through a 25-year contract. The sale is part of its strategy to reduce capital investments and earnings volatility, the company said in a statement.


The move is part of a larger announcement on Monday by Accor to sell 82 properties, mainly hotels, in Europe and the U.S. The company will sell 71 of its Novotel, Mercure and Ibis hotels in France and Belgium to Fonciere des Murs for 583 million euros ($700.9 million).


The properties being sold in Europe include 59 hotels and five health spa institutes in France and12 hotels in Belgium. Accor said it would manage the French and Belgian hotels for at least 12 years and has four 12-year renewal options.


Accor owns hotels under the Sofitel, Novotel, Mercure, Suitehotel, Ibis, Etap Hotel, Formule 1, Motel 6, Studio 6 and Red Roof Inns brands, representing more than 4,000 hotels and 470,000 rooms in 92 countries.

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