French hotel major Accor today sold 60% stake in 15 Formule 1 projects to a hospitality-oriented private equity company SAMHI. The sale comes close on the heels of Accor selling its US hotel division including Motel 6 for $1.9 billion to Blackstone in May.
Gaurav Bhushan, Chief Development and Investment Officer, Accor Asia-Pacific, in a short interview to Swaraj Baggonkar stated that funds raised from Formule 1 divestment will be used for further expansion of Accor in India and around the world.
1. Why has Accor sold its stake?
This strategic decision to divest the majority ownership of these Formule 1 assets adds a new dimension to our business in India and is in line with Accor’s global strategy of ‘asset-light’ development, which allows us to focus on what we do best: operating a consistently high quality portfolio of hotels that spans the spectrum from luxury to budget.
2. How will Accor utilise the funds?
We will invest the funds in further developing Accor’s network in India and around the world.
3. Will all the new properties be of management contract?
The 15 Formule 1 properties covered by this transaction will be operated by Accor under a long-term operating agreement between Accor and SAMHI. Accor will retain the rights to own and/or develop further Formule 1 projects in India.
4. Will the company give up ownership model completely?
Accor continues to invest in its brands, together with our partners. We remain invested in India through our various investment vehicles.
5. How much did Accor raise through the stake sale?
Accor will be unable to comment on the value of the stake sale.
