Kingdom Holding Company (KHC) announced that, together with its partners, it has signed an agreement to sell Mövenpick Hotels & Resorts (MHR) to AccorHotels where KHC is also an investor.
Founded in 1973, in Switzerland, MHR currently operates 84 high end hotels in 27 countries across Europe, the Middle East, Africa and Asia-Pacific with more than 20,000 rooms. It also has plans to open an additional 42 hotels by 2021, adding a further 11,000 rooms to its portfolio.
KHC has been an investor in MHR for nearly 20 years. At a time of industry consolidation, the inclusion of MHR into the Accor portfolio at this stage of its history makes perfect strategic sense. In addition to the significant synergies which will be realized, the transaction will enable MHR to benefit from Accor’s leading distribution channels, global operating systems, innovative digital technology and attractive loyalty program. Accor will harness this unique Brand, further strengthening it through growth, guest experience and product enhancement.
Kingdom Hotels (Europe) LLC, a wholly owned subsidiary of KHC, holds a 33.3% equity interest in MHR.
The transaction is being concluded on the basis of an enterprise value for MHR of CHF560 million.
The transaction is subject to anti-trust approvals. Completion is expected to take place in the second half of 2018.