Travel and Leisure Co. has signed a deal to acquire Accor’s vacation ownership business – a total of 24 resorts across Australia, New Zealand and Indonesia – for US$48.4 million.
Travel and Leisure Co. will also receive the exclusive rights to develop new vacation ownership clubs and products under the Accor Vacation Club brand across Asia Pacific, Middle East, Africa and Turkey.
Under the exclusive licensing agreement, Accor will receive a percentage of vacation ownership sales revenue as a licensing fee.
Speaking exclusively to HM, Robinson said the intention is to keep the properties under their existing Accor brands – Peppers, MGallery, Grand Mercure, The Sebel, Novotel, Mantra and Mercure.
The decision to offload the vacation club business aligns with Accor’s asset-light strategy to evolve the business.
“The transaction is aligned with our asset-light strategy and allows us to monetise our existing business and enhance recurring fee streams, supporting the continued growth of our franchised hotel network across Asia Pacific,” said Accor’s Chief Executive Officer Accor MEA APAC – Premium, Midscale and Economy Division, Duncan O’Rourke.
“By selling the business to a trusted and proven operator with significant scale, we will be able to grow the business and continue to drive outstanding hospitality experiences for Accor Vacation Club members.”
The acquisition creates a new line of business for Travel and Leisure Co. as Accor joins the company’s portfolio of brand affiliations, including Wyndham, Margaritaville, and Sports Illustrated.
When the deal closes, which is expected in the first quarter of 2024, the Accor Vacation Club business line will report to Travel + Leisure Co. President and Managing Director of International Operations, Barry Robinson, based in the company’s Singapore office.
“We are excited about building on the legacy of Accor Vacation Club, which has been a recognised and respected presence in the region for more than 20 years,” Robinson said.
“We are a partner of choice for leading hospitality brands because we are able to individually curate their brands and maintain their unique offerings to travellers.
“Utilising our experience and the scale of our global platform, we will be able to accelerate the growth of this vacation club business by delivering outstanding vacation experiences for current and future members.”
The addition of Accor Vacation Club’s will grow the Travel and Leisure Co.’s club resort count by approximately 40% to a total of 77 properties.
The 30,000 members of Accor Vacation Club will increase Travel and Leisure Co.’s member base to more than 100,000 in the Asia Pacific region.