Accor is in exclusive negotiations with Royal Holiday Group to acquire 17 management agreements in the Americas, the company announced Thursday. The deal is for six existing all-inclusive resorts in Mexico to be managed by Ennismore, the lifestyle hotel entity of which Accor is a majority owner. Additionally, the deal would include 11 resorts and city hotels in Mexico, Argentina, Puerto Rico and the U.S. that would be managed by Accor’s premium, midscale and economy division within the Americas.
Details of the specifics on each of the 17 hotels was not provided, but the combined portfolio totals 3,200 keys—1,660 of which belong to the Mexican all-inclusive resort properties—and the deal is slated to fetch $79 million to be paid in phases. This amount will go toward a $130 million renovation plan slated for the next 2.5 years.
Three hotels in Cancun, Cozumel and Puerto Vallarta within the all-inclusive resort portfolio included in the deal will be reflagged as Rixos Hotels, which is Accor’s luxurious all-inclusive resort entity. The remaining properties in Cancun, Acapulco and Ixtapa will maintain their existing brand. The 11 other hotels in the broader deal will take on affiliation after they are renovated with brands like Swissôtel, Mercure, Mercure Living or Ibis Styles.
“This is an incredible opportunity for Accor to expand its premium, midscale and economy brands in new destinations throughout the region,” Thomas Dubaere, Accor’s Americas CEO, said in a statement. “This addition represents a significant milestone for us and we are committed to supporting and enriching the local communities where our resorts are located, fostering strong development relationships and contributing to their sustainable development.”
The deal is slated to close in the second half of this year and means another major hotel brand is entering a sector that was largely dominated by Sandals Resorts only just a few years ago. Now, Marriott, Hilton, Hyatt and IHG Hotels & Resorts all have a formidable all-inclusive resort offering in the region.
“This strategic acquisition marks Rixos’ bold entry into the Americas—a pivotal move into one of the world’s most promising all-inclusive markets,” added Gaurav Bhushan, Ennismore’s co-CEO, in a statement.