Accor takes four NZ hotels in big push

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Control of the Mirvac chain of hotels in New Zealand has changed hands as part of a €195 million ($334 million) Australasian deal by the world's largest hotel operator.

Accor, with headquarters in France, now has control of four Mirvacs in New Zealand: the high-rise Quay West Suites in Auckland's Albert St, Sebel Suites Auckland in the Viaduct Harbour, Sebel Cornwall Park at Greenlane and Sebel Trinity Wharf Tauranga.

Three properties will be renamed next year.

They are strata-titled, so rooms are owned by investors but operated by the hotel management business.

A spokesman for Accor said the Greenlane property was yet to open at the site of the former Kingsgate in Campbell Rd.

An industry expert said the deal was for management, not real estate investment, reasons.

Denis Hennequin, Accor chairman and chief executive, said the deal had two strands: Accor paid €149 million for Mirvac Hotels & Resorts, a management company covering 48 hotels and 6101 rooms, and €46 million for a 21.9 per cent stake in the Mirvac Wholesale Hotel Fund, an investment vehicle with ownership of seven of the hotels.

A further stake in the wholesale fund would be bought by Accor's partner Ascendas, the Singapore real estate developer, he said.

Hennequin said the 48 hotels were in Auckland, Tauranga, Sydney, Melbourne, Brisbane and Perth and most would become Accor's upscale and midscale brands - Sofitel, Pullman, MGallery, Novotel and Mercure.

Last September, Accor said it was in expansion mode with a target of 40,000 room openings next year and the same in 2013.

Hennequin said the latest deal would give it 241 hotels and 32,500 rooms in Australia and New Zealand, covering the spectrum of hotel segments.

"This operation is a major success in a high-growth market. With our growth strategy, which includes both organic growth and targeted acquisitions such as this one, enabled by our excellent financial situation, I am confident in our capacity to reach our objectives," he said.

Michael Issenberg, Accor Asia Pacific chief operating officer, said the Mirvac deal was an important step for the group in Australia and New Zealand.

Completion of the Mirvac purchase is due in the first half of next year.

ROOM AT THE INN

Accor:

* Just bought four NZ hotels.
* Three in Auckland, one in Tauranga.
* Some are branded Sebel.
* Part of a $334m, 48-hotel Australasian deal.