AccorHotels to Turn HotelInvest Arm Into Subsidiary

PARIS—French hotels group AccorHotels SA said it is turning its hotel ownership and investment arm into a subsidiary, opening the way for third-party investors to take control of the operations.

The owner of the Ibis and Sofitel chains is in the midst of a turnaround plan led by Chief Executive Sebastien Bazin, a private-equity specialist.

Shortly after taking over in 2013, Mr. Bazin split the company's operations into two units: The HotelServices unit concentrating on hotel operations and HotelInvest, which is focused on real estate and asset management.

AccorHotels said HotelInvest had a gross asset value of €7 billion ($7.7 billion) in 2015.

"By making it possible to bring in new investors for part of our business, this project will significantly increase the resources available to the group," Mr. Bazin said.

As part of the restructuring, Mr. Bazin has also expanded the group's business in China, increased its exposure to the luxury sector and pursued acquisitions to ramp up its digital know-how.

Earlier Tuesday, AccorHotels said it had completed the acquisition of luxury hotel brands Fairmont, Raffles and Swisshô tel, boosting its business in North America.

Write to Nick Kostov at [e-mail]

(END) Dow Jones Newswires

July 12, 2016 13:15 ET (17:15 GMT)

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