Key Partnership for Hotel Management in Mexico, Argentina, Puerto Rico, and the US
Accor, a French hospitality group, announced on Wednesday that it has initiated negotiations with Royal Holiday Group to manage 17 hotels across Mexico, Argentina, Puerto Rico, and the United States. These properties total 3,200 rooms.
Financial Details and Renovation Plan
The total anticipated payment is $79 million, to be disbursed in phases yet to be determined. This funding will partially finance a $130 million renovation plan over the next 30 months for these properties.
Strategic Importance and Future Growth
According to Thomas Dubaere, CEO of Accor Americas, “This is an incredible opportunity for Accor to expand its premium, midscale, and economy (PM&E) brands into new regional destinations. This addition marks a significant milestone for us, and we are committed to supporting and enriching local communities where our resorts are located, fostering strong relationships and contributing to their sustainable development. Together with our new partners, we aim to create unforgettable experiences for our guests and generate a positive impact on these vibrant destinations.”
Impact on Accor’s Portfolio and Growth
In a statement, it was highlighted that managing these hotels will accelerate Accor’s growth in the region, particularly in Mexico. The partnership will also strengthen Accor’s all-inclusive resort portfolio, which has seen an annual compounded growth rate of 25% in the network over the past three years.
Hotel Portfolio and Branding
The hotel portfolio will include six all-inclusive resorts in Mexico (1,660 rooms) managed by Ennismore and 11 resorts and urban hotels in Mexico, Argentina, Puerto Rico, and the EU (1,540 rooms) managed by Accor PM&E Americas.
- In Mexico, six properties (Cancun, Cozumel, and Puerto Vallarta) will be rebranded as Rixos Hotels post-renovation, while the remaining properties in Cancun, Acapulco, and Ixtapa will continue under the Royal Holiday brand.
- The other eleven properties will change names after renovation, falling under the Swissôtel, Mercure, Mercure Living, or ibis Styles brands.
Timeline and Regulatory Approvals
According to Accor, the agreement is expected to close in the second half of this year, following routine regulatory approvals, including anti-monopoly clearance for such acquisitions.
Key Questions and Answers
- What is the main focus of this partnership? This collaboration aims to expand Accor’s premium, midscale, and economy (PM&E) brands into new destinations in the Americas.
- How much will Accor invest in hotel renovations? Accor plans to invest $130 million in renovating these properties over the next 30 months.
- Which hotels will be managed by Ennismore and Accor PM&E Americas? Six all-inclusive resorts in Mexico will be managed by Ennismore, while 11 resorts and urban hotels in Mexico, Argentina, Puerto Rico, and the EU will be managed by Accor PM&E Americas.
- What brands will the renovated properties fall under? The rebranded properties will be managed by Ennismore, Swissôtel, Mercure, Mercure Living, or ibis Styles.
- When is the agreement expected to close? The partnership is anticipated to finalize in the second half of this year, pending regulatory approvals.
