This sale received international attention, probably because Accor is a French company.
Many investors have purchased strata titled apartments in Mirvac managed buildings. For the most part, the income is pooled, and investors receive income based on lot entitlements. It will be interesting to see if Accor will be able to manage such complex arrangements, where each hotel has, in effect, many different owners.
A message to Mirvac staff from management said the following:
"The
strategic review has today culminated in the Board of Mirvac Group
approving an important transaction involving the sale of Mirvac Hotels
& Resorts to Accor Asia Pacific (“Accor”) and the sale of Mirvac’s
49% interest in the Mirvac Wholesale Hotel Fund (owner of six of our
largest hotels) to Accor and Singapore based investor Ascendas.
This
transaction is a transforming event for our company. It will create new
opportunities for staff, our owners and our customers. There are also
some critical elements to the transaction that I will explain below that
should encourage staff to embrace the opportunity to be part of one the
world’s largest hotel companies. I can imagine you have many questions
and I will attempt to touch on what I think are some of the major items.
What does this mean for Mirvac Hotels associates?
Under
the terms of the sale contract Accor is obliged to offer employment to
all staff on their prevailing terms and conditions.
How will our business transition to Accor?
The
transition of our business into Accor will be a gradual and considered
process to ensure minimal disruption. This means key elements of our
business such as CRS, web site, sales & marketing programs, national
training, STARS Program will initially continue as per usual.
What is the timing for the completion of the transaction?
Completion
is subject to a number of consents and regulatory approvals which means
the sale will not be completed until the second quarter of 2012. Until
completion, it will be business as usual. Post completion it is
anticipated there will be interchange of staff between Accor and Mirvac
Hotels & Resorts that hopefully will give everyone the opportunity
to enhance their career path."