Accor buys Mövenpick

France’s AccorHotels has confirmed that the company has officially acquired Mövenpick Hotels & Resorts for 480 million Euros ($559 million). The transaction was subject to regulatory approvals.

The transaction involves purchase of 100% share capital of Mövenpick.

The acquisition integrates Mövenpick’s 84 operating hotels into Accor’s existing global portfolio of more than 4,500 hotels.

Chris Cahill CEO of AccorHotels Luxury Brands revealed that the three reasons for the acquisition were that Mövenpick is an asset light business, the family brand fits in well into Accor’s current existing portfolio and it has a strong existing MEA portfolio.

Mövenpick Hotels & Resorts which was established in 1973 as an extension of Mövenpick Restaurant Business has since expanded its international presence and today operates more than 20,000 rooms in 84 hotels across Europe, the Middle East, Africa and Asia.

Currently, the hotel company has 42 additional hotels under development and those are set to open by 2021. At present, the hotel company employs 16,000 hospitality professionals.

In 2016, AccorHotels announced its US $3.2 billion deal with FRHI to buy three luxury hotel brands, Fairmont, Raffles and Swissôtel. In December 2016, Banyan Tree Holdings and AccorHotels entered into a long term partnership to develop and manage Banyan Tree-branded hotels around the world.

Most recently, Accor purchased table reservation system ResDiaryAustralia’s Mantra Group and announced a stake in Mantis Group, a small luxury boutique hotel chain based in South Africa.