French group AccorHotels has agreed to acquire the management company that operates Chile’s Atton Hoteles for around $105 million.

The agreement, signed together with Chilean investment and management holding group Algeciras, will see the hospitality chain boost its earnings and strengthen its position in Latin America.

Under per the agreement, AccorHotels will acquire 100 per cent of the management company that operates 11 Atton hotels (2,259 rooms) across Chile, Peru, Colombia and Florida, US.

AccorHotels will also buy 20 per cent of the property company that owns these assets, with the remaining 80 per cent being bought by Algeciras.

AccorHotels will also have an option to sell its 20 per cent in that property company to Algeciras after five years.

AccorHotels, whose portfolio ranges from upmarket brands such as Sofitel to the Mercure and Ibis brands, expects the Atton deal to be completed in the second half of this year.

Patrick Mendes, CEO of AccorHotels for South America, stated: “We are delighted to have come to this strategic agreement with Algeciras. With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations." - TradeArabia News Service