Orbis decided on the potential disposal of its service activity (asset light entity) and entered into exclusive negotiations with Accor - proceeding with the Company business model transformation.
Following previous announcements regarding the separation of its business lines into two separate activities, Orbis decided today to dispose of service activities that comprise franchise and management agreements. In that context, Orbis will enter into sole negotiations with Accor on the potential acquisition, and the implementation of a management contract under which Accor would manage hotels in the Orbis network.
“It's an important step towards the Orbis transformation. The decisions we have been taken follow our analysis and this is a consequence of focusing Orbis strategy and operations on the asset-heavy activity. Entering into exclusive negotiations with Accor, our strategic partner and owner of brands under which all hotels in the Group’s network are operating, is mostly driven by the current legal grounds of our long-term cooperation. We appreciate the knowledge and experience of Accor, which will be invaluable in the restructuring process and we look forward to strengthening Orbis’ position on the real estate hotel market,” comments Gilles Clavie, President & CEO of Orbis S.A.
The management board also decided to hire an independent expert to assess the value of the service part of the Group which will be vital during the negotiation process.
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