• Accor takes full control of part of Dorint

German operator Dorint has split in two, giving Accor control of 52 of its 93 hotels and Ebertz & Partner the remaining 41.
   The French giant has to pay Eu52m immediately, to fund its share of the capital increase that is part of the deal, and it will in the first half of this year spend a further Eu75m to buy out minority shareholders.
   Accor will end up with a 90% stake in the 52 hotels which generate around Eu300m in revenue and an expected 2007 EBITDA of Eu16m.
   The key factor has been the restructuring of the lease contracts. Rent reductions mean that the hotels will now be profitable. Last year, Accor's 34% stake in Dorint generated an estimated Eu8m loss.
   The hotels, comprising eight Sofitels, 17 Novotels and 27 Mercures will now all drop the Dorint moniker. Accor is the leading hotel operator in Germany with 331 hotels. Its Mercure chain, at 134 properties, is the largest brand in the country.
   Meanwhile, Accor is showing its preparedness to churn assets. Through agent Christie & Co it has sold the 100 room Novotel in Preston to a joint venture between Parklake Hotels and Teesland Development Fund. The property is to be refurbished and opened as a Ramada.
   Later today Accor is set to report its final quarter sale figures.

Share →