The Orbis hotel group has signed an agreement with Accor regarding the sale of its services business and has established the principles of a long-term management agreement between the parties for all Orbis-owned and leased hotels.
Following recent announcements regarding the separation of its businesses and entering negotiations with Accor for the acquisition of light assets, Orbis has signed a general, non-limiting set of clauses with Accor regarding the sale of the services business.
The agreement concluded between Orbis and Accor includes the conditions for selling the hotel services component once these “light assets” are separated from the rest of the group’s businesses. This will allow the takeover from Orbis of all its light assets and activities, including franchise and management contracts and any other rights related to the services side.
As a result of the transformation plan, Orbis and Accor will also enter into a hotel management contract through which Accor will manage all hotels currently owned and leased by Orbis.
The agreed purchase price for the services business amounts to approximately 1.2 billion Polish zloty, or 286 million EUR.
The completion of this transaction is planned for October 2019. Meanwhile, Orbis is undergoing a process of separating light assets from real estate properties and will obtain all necessary approvals.
Orbis is beginning a new stage of its evolution. It will remain a strong, reliable company with 72 existing hotels and another 5 under development. The value of Orbis real estate assets amounts to approximately 1.13 billion EUR.
In addition, Accor announced that it has begun to divest its entire stake in the share capital of Orbis.
Source: AccorHotels
Frequently Asked Questions
What is the value of the Orbis services business sale?
The agreed purchase price for the hotel services component is approximately 1.2 billion PLN, which is equivalent to 286 million EUR.
What happens to Orbis-owned hotels after the sale?
They will remain in Orbis’s ownership but will be managed by Accor under a long-term hotel management agreement.
When is the transaction between Orbis and Accor expected to close?
The completion of the transaction is scheduled for October 2019, following the separation of assets and obtaining all necessary approvals.