Accor has just announced that it is to put its stake in Reef Casino up for sale. Reef Casino is an Australian casino business and many will be surprised by the move, but it seems that Accor is re-evaluating its business interests and as such its asset management strategy is under scrutiny.
At present Accor owns a twenty nine percent stake in the Reef Casino business called Reef Casino Trust and also has a fifty percent ownership in other businesses that relate to the Reef Casino outfit. This means that there is a huge percentage of the Reef Casino business and associated companies that will be available for willing business partners.
The whole portfolio of Reef Casino that Accor currently have money invested in includes Casinos Austria Cairns and the sale will generate in the region of eighty five million Dollars Australian for the company.
Reef Casino is a massive casino complex in Northern Queensland that not only houses around five hundred pokies, but also hosts a huge hotel and restaurants too.
Our understanding is that a Hong Kong based company is looking to take over the portfolio from Accor so it looks like a deal is already underway which will satisfy both companies. The question will be whether the agreement gets sanctioned by the related government agencies.
Accor is a huge name in the hotel industry with well over a hundred thousand employees and hotels across the globe under big names such as ibis and Novotel. Many will wonder why they have detached themselves from Reef Casino, but we can only think its because it pays good business to review and consolidate its portfolio in the way that they have.