Accor Has entered exclusive discussions with Royal Holiday Group for the acquisition of management agreements across 17 properties in Americas. A deal valued at $79m will help accelerate the Paris hotel giant’s growth in a region dominated largely by U.S.-based rivals.
Accor reported Thursday that its portfolio comprises about 3,200 hotel rooms in Mexico Argentina and the U.S.
The deal would help Accor to strengthen its position in North and South America. It has traditionally struggled with rivals like Marriott, Hilton Choice, Wyndham and Hyatt. Accor has roughly 3,083 hotels in Europe. However, the company’s footprint in North and South America is relatively small.
If the deal and regulators approve the deal, the properties would undergo renovations worth $130 millions over a period of 30 months.
All-Inclusive push
Ennismore is Accor’s lifestyle hotel joint venture. It will manage a dozen existing all inclusive resorts in Mexico (1 660 keys).
Three properties in Cancun and Puerto Vallarta have been renovated, and will now be rebranded as Rixos hotels. This marks Rixos’ entry into America.
It is a market that has attracted major hotel groups due to the fact that it allows them to redeem more points through their loyalty program. In February, Hyatt said it would buy Playa Resorts in a $2.6 billion dealThere were reports last month that Sandals might be up for sale for about $6 billion.
Accor Strategic Goals
Accor will manage 11 existing resorts and hotels (1,540 key) in Mexico and Argentina as well as parts of the U.S. such Puerto Rico.
This move will be in line with Accor’s plans to further develop lifestyle and all-inclusive offers. The company said that its network had seen a compound annual growth of 25% over the last three years.
Three other resorts – Cancun Acapulco Ixtapa – will keep their existing brand.
The remaining 11 properties would be rebranded under Accor’s Swissôtel, Mercure, Mercure Living, or ibis Styles brands.
This investment aligns with Accor’s commitments to enhance its presence in the Americas, which Group CEO Sébastien Bazin has identified as a key growth region. This acquisition would further Accor’s asset-light, growth strategy in Americas.
The deal comes at a time when Accor has momentum in the region. In November 2024 the company outlined its intention to expand its Premium, Midscale & Economy (PM&E) portfolio in the Americas from 450 to 600 hotels by 2027.
According to its annual report, the group already has more South American hotels than any other global competitor.
The company’s proposed deal reflects its values. dual strategic approach Accor Group’s Deputy Chief Executive Officer has emphasized the importance of adding luxury brands in order to increase profits, while leveraging economy offerings to stabilize profit. Jean-Jacques Morin spoke with Skift about recently. Morin will speak at Skift’s Asia Forum Bangkok, 14-15 May.
Both companies stated that they expect to close the deal in “the second half” of this year.
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