Accor has sold a further a 1.5 per cent stake in Huazhu Group of China for €239 million as it continues to battle the fallout from the Covid-19 pandemic.
The French company said the transaction would reap the benefits of the initial investment, while also simplifying its balance sheet.
After this transaction, Accor will own a 3.3 per cent stake in Huazhu and continues to be represented on the board of directors.
Following a $451 million deal in December 2019, Accor was left with 5.5. per cent of the Nasdaq-listed multi-brand Chinese hotel company.
Accor and Huazhu will continue to develop a partnership, which was originally launched in early 2016.
A master-franchise agreement between the two has enabled the openings of 300 economy and mid-scale hotels in China, mainly under the ibis, Novotel and Mercure brands.
More than 200 properties in the pipeline are scheduled to open over the next three years.
Originated in China, Huazhu Group operated 6,789 hotels with 652,162 rooms at the end of December, with operation in 16 countries.
Brands under its control include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House and Ni Hao Hotel.
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