Accor sells stake in China’s Huazhu Group for €239m

Accor has sold a 1.5 percent stake in Huazhu Group Ltd. (HTHT), a hotel management company in China, for €239 million ($289 million), bringing its total ownership in Huazhu to 3.3 percent.

The master-franchise agreement has enabled the openings of 300 economy and midscale hotels in China, mainly under the Ibis, Novotel and Mercure brands. The companies are planning to open more than 200 properties over the next three years.

The companies are planning to continue to develop their partnership and growth dynamic, which was initiated in 2016.

Accor said the transaction allows it to crystallize further value creation of the initial investment while simplifying its balance sheet.

Accor is a major hospitality group consisting of more than 5,000 properties and 10,000 food and beverage venues throughout 110 countries.