Kingdom Holding to sell Mövenpick Hotels to France’s Accor

Kingdom Holding Co. has signed an agreement with its partners to sell Swiss hospitality chain Mövenpick Hotels and Resorts Co. (MHR) to its associate, France’s AccorHotels, the Saudi company said in a bourse statement on Monday.

Kingdom Holding owns a 33.3 percent stake in MHR through its wholly owned European subsidiary. Meanwhile, the company holds 5.8 percent in AccorHotels.

The deal is subject to antitrust regulations, the statement said.

The transaction is expected to be complete during the second half of 2018.

Financial impact of the sale is to be determined after its completion.

Kingdom Holding has been divesting hospitality assets across the Middle East and Africa as part of its business strategy, a source told Reuters earlier this year.

In January, the company reportedly sold its stake in the Four Seasons Hotel in Beirut for around $100-115 million including debt.

Meanwhile, Kingdom Holding chairman Prince Alwaleed bin Talal last month sold his stake in the Four Seasons Damascus to Syrian businessman Samer Foz, Financial Times reporte.