Accor To Run 27 Thakral Hotels
Sydney Morning Herald
Tuesday December 21, 1999
Accor Asia Pacific has expanded its presence across the country with the acquisition of the management rights of 27 hotels owned by Thakral Holdings, in a transaction valued at $29 million.
The deal will see Accor become Australia's largest hotel management company, with 90 hotels. Thakral's hotels operate under the All Seasons brand.
The deal comes as Accor is in discussions to buy a number of hotels from its listed associate, Tourism Asset Holdings.
The overall hotel sector is undergoing rationalisation, including the proposed takeover of Southern Pacific Hotels by Bass Holiday Inn of the UK.
When Accor takes over Thakral's management rights it will control about 14,000 rooms or just over 8 per cent of the Australian market.
If Bass is successful in acquiring the SPHC portfolio it will control about 8,000 rooms or about 4 to 5 per cent of the very fragmented local industry.
Accor is yet to decide whether to rebrand the new hotels under its Ibis, Novotel, Mercure, Formule 1 and Sofitel brands.
All Seasons manages 27 properties with 3,825 rooms, including five Thakral-owned hotel and resort properties.
It is Australia's fourth largest hotel manager and employs more than 1,500 full-time and part-time staff.
Thakral has owned the business since 1994.
The All Seasons portfolio is made up of hotels in the 3 to 41/2-star category. The flagship hotel is the Menzies in Sydney. The group also includes six CBD hotels in Melbourne, a range of hotels in Queensland resort areas such as the Sunshine Coast and Cairns and new hotels in Sydney's Darling Harbour, as well as Western and South Australia.
The managing director of Accor, Mr Michael Issenberg, said: ``We always had a healthy respect for All Seasons and the brand will be maintained and enhanced by adding the benefits of our international sales, marketing and reservations network..
``The combined strength of this international reach, our existing business in Australia, and the well-established All Seasons business and brand will ensure customer satisfaction, enhanced opportunities for over 10,000 employees and improved hotel profitability."
Thakral's shares closed up 2c to 75c and Tourism Asset Holdings rose 4c to 62c.
© 1999 Sydney Morning Herald
