AccorHotels, a French multinational hotel group, which operates in 95 countries, signed an agreement with Mövenpick Holding and Kingdom Holding to acquire a 100 percent stake of Mövenpick Hotels & Resorts for 560.0 million Swiss Francs (USD 558.3 million).
According to their statement, the enterprise value of 560.0 million Swiss Francs implies a multiple of 14.9x expected 2019 EBITDA of USD 37.5 million.
Mövenpick Hotels & Resorts is a hotel management company headquartered in Baar, Switzerland. It is currently owned by Mövenpick Holding who has a stake of 66.7 percent and the Saudi based Kingdom Group who have a stake of 33.3 percent.
Mövenpick Hotels & Resorts operates in 27 countries with 84 hotels, approximately 20,000 rooms and a particularly strong presence in Europe and the Middle East. In Africa, Mövenpick Hotels & Resorts operates 24 hotels in 5 countries; 16 Hotels in Egypt, 3 Hotels in Tunisia, 3 Hotels in Morocco, 1 Hotel in Ghana and 1 Hotel in Kenya.
The Mövenpick Hotel & Residences Nairobi is located in Westlands. They have focused their growth in Europe, The Middle East, Africa and Asia. They plan to open 42 additional hotels by 2021, adding a further 11,000 rooms to its portfolio, with 5 new hotel developments in Africa; 2 in Egypt, 1 in Cote d’Ivoire, 1 in Ethiopia, and 1 in Nigeria.
The acquisition is important for both parties, as it will accelerate AccorHotels growth in emerging markets particularly in the Middle East, Africa, and the Asia Pacific. Mövenpick Hotels & Resorts will benefit from AccorHotels’ loyalty program, distribution channels, and operating systems, which will help optimize their performance.