Accor, a France-based hotels group, said Monday it agreed to sell 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate for 863 million euros ($1.1 billion).
The Novotel, Mercure, Ibis and Etap Hotel properties involved in the transaction represent a total of 12,000 rooms, the company said in a statement. Accor will continue to operate the hotels under 12-year variable-rent leases.
Accor, which is pursuing a new real-estate management strategy to reduce earnings volatility, will use the proceeds to cut its net debt by 612 million euros ($807.2 million).
Accor shares fell 2% to 65.25 euros ($86.06) in Paris in line with the rest of the market.