AccorHotels has announced a plan to restructure a portfolio of 31 hotels in Australia. After successfully reaching an agreement with one of Abu Dhabi Investment Authority’s wholly-owned subsidiaries, the portfolio includes 4,097 rooms and was first purchased by the subsidiary in 2013.

AccorHotels is slated to convert 15 triple-net leases into 50-year management agreements and extend the management term of another of the portfolio properties to 50 years. This means that 16 hotels in Australia will remain managed by AccorHotels for the better part of the century.

Second, AccorHotels will acquire the real estate of the remaining portfolio properties, with the estimated cost being US$149 million.

This deal is in line with the group’s strategy “to optimise cash flow generation, reduce earnings volatility and restructure lease contracts into owned and managed hotels. The acquisition of the economy hotels in key locations is a signal of our continued focus on supporting the group’s growth strategy by holding a selective portfolio of profitable hotel property assets,” a company release states.

Accor expects that these deals and acquisitions will help to bolster its position “as a market leader in Australia by adding so many key assets.”

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