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Hotels and motels

Air France Sells Majority Stake in Meridien Hotel Chain to Forte PLC

Strategic Insights

— 1 min read

Air France has announced the sale of its majority stake in the luxury Meridien hotel chain to Forte PLC, a British company valued at 1.9 billion francs ($358 million). This purchase surpasses the bid made by the French consortium Accor, worth $377 million. Forte will acquire 57.3% of Meridien for 1.090 billion francs ($205.6 million), while maintaining the current luxury standards and keeping the headquarters in Paris.

Key Takeaways:

  • Air France sold its majority stake in Meridien to Forte PLC for 1.9 billion francs ($358 million), exceeding Accor's bid by $200 million.
  • The French consortium Accor attempted to sweeten its offer by including commercial facilities and guarantees, but was outbid by Forte.
  • The sale of Meridien is part of Air France's restructuring plan, which includes the gradual cutting of 5,000 jobs and the freezing of salaries for three years.
  • The European Commission approved a capital injection of 20 billion francs ($3.68 billion) by the French government into Air France, with the condition that Air France sell its hospitality business.
  • Forte PLC, the buyer, already owns the luxury George V and Plaza Athenee hotels in Paris and has committed to maintaining Meridien's luxury standards and development.

Statistics:

  • Air France's total valuation of the Meridien hotel chain: 1.9 billion francs ($358 million)
  • Forte PLC's bid for Meridien: 1.090 billion francs ($205.6 million)
  • Air France's expected loss last year: $1.3 billion
  • Number of jobs to be cut as part of Air France's restructuring plan: 5,000
  • Duration of salary-freezing: 3 years
  • Capital injection into Air France by the French government: 20 billion francs ($3.68 billion)

Sources:

  • Air France's statement on the sale of Meridien to Forte PLC (no date)
  • Le Monde, "Air France vend la chaîne hôtelière Meridien à Forte" (no date)
  • France Info, "Air France cède Meridien aux Britanniques" (no date)
  • AFP, "Air France vend 57.3% de Meridien à Forte PLC" (no date)

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