Author: Brit Stanner
Accor, the French hotel chain has sold the famous Amsterdam Grand Hotel for almost 100 million euros. The deal which is expected to reduce Accor's adjusted net debt by almost 70 million euros, came after months of negotiations about renovations to the building.
In the end the new unnamed buyer agreed to buy the hotel for 60 million euros with a promise of 30 million euros to be spent on overdue renovation work.
Accor management, who still control a 40% share of the hotel, will continue to run the business after signing up to a 25 year management contract.
A spokesman for the company told reporters that the deal was part of a luxury hotel strategy which involves selling off property but continuing to manage the running of it.
The Grand Hotel has almost 200 rooms and a huge amount of meeting and dining space. It is expected to be re-branded as the high-end Sofitel Legend Outlet when work is completed in the summer of 2009.