Photo/Zhang Xiaoqing (NBD)

Dec. 6 (NBD) -- French multinational hospitality company Accor announced Friday it has inked a definitive agreement to sell around 5 percent stake in Huazhu Group for 451 million U.S. dollars. 

Huazhu (NASDAQ:HTHT) is a leading multi-brand hotel group in China, and operates a wide range of hotel brands, including Grand Mercure, Joya, Novotel, Mercure, Ji, ibis, HanTing Plus. 

When the deal was closed, Accor would still keep an approximately 5 percent stake in Huazhu, and the Paris-based company's Chairman and CEO Sebastien Bazin will retain his seat on the Board.

According to Accor's 2019 interim financial report, the share of net profit of associates and joint ventures fell by 34 million euros to a negative 14 million euros in the six months ended June 30, 2019, mainly due to the shares of losses of AccorInvest for 11 million euros and of Huazhu for 13 million euros. 

Under a strategic partnership initiated four years ago, Accor and Huazhu have opened 200 economy and mid-scale hotels mainly under brands including ibis, Novotel and Mercure.  

Email: gaohan@nbd.com.cn