Accor has announced it has entered into a definitive agreement to sell approximately 5 per cent of its stake in Huazhu Group Limited (HTHT) for USD451m.

In a statement released last week, Accor said it will keep an approximately 5 per cent stake in Huazhu and Chaiman and CEO Sebastien Bazin will remain on the Board.

The transaction, which was conducted in full cooperation with Huazhu and its Founder and Chairman Qi Ji, allows Accor to "crystallize the value" created from the implementation of the partnership between both groups in January 2016, the initial investment of which has increased by 4.5 times.

It comes a month after Huazhu Group entered into an agreement to acquire all shares in Frankfurt-based Deutsche Hospitality, whose portfolio includes the Steigenberger Hotels & Resorts brand, for a base cash consideration of about €700 million.

Accor says it will continue to develop its successful partnership with Huazhu, which has enabled the openings of 200 economy and midscale hotels in China, mainly under the ibis, Novotel and Mercure brands.

An additional 250 properties in the pipeline are scheduled to open over the next three years.

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