The public hotel company is selling 71 hotel properties and five health spa institutes in Europe to Fonciere des Murs for $700 million (euro 583 million). The remaining six US hotels are being sold for $370 million to a joint venture of Accor, GEM Realty Capital and Whitehall Street Global Real Estate Partnership 2005.

In the deal with listed property company Fonciere des Murs, Accor is selling 71 Novotel, Mercure and Ibis-branded hotel buildings in France (59) and Belgium (12) and 5 Thalassotherapy institutes in France. Accor officials say the company will continue to manage the hotels for at least 12 years, and has four 12-year renewal options. Accor will pay rent equal on average to 14% of revenues with no minimum guaranteed, according to the agreement.

To its joint venture with GEM and Whitehall, both of Chicago, Accor North America is selling six Sofitel brand hotels with a combined 1,931 rooms. The hotels are located in Chicago, Los Angeles, Miami, Minneapolis, San Francisco and Washington, DC. Accor says it would hold a 25% stake in the JV. Accor's ongoing management contract for the properties runs for 25 years.

"This partnership … will allow us to significantly accelerate the presence of Sofitel throughout North America," says Accor North America chief executive Georges Le Mener.

Accor has 4,000 hotels in 92 countries operating under its brands. Morgan Stanley acted as financial advisor to Accor. Proskauer Rose LLP acted as legal advisor.