Accor SA has signed a memorandum of understanding to sell its stake in Essendi to a consortium led by Blackstone Inc. for up to €975 million ($1.1 billion). The French hospitality giant confirmed the preliminary agreement, which marks a significant divestment from its portfolio. The deal involves Essendi, though the nature of this entity and its relationship to Accor's core business remains unclear from the announcement.

This transaction represents a major move by Accor to streamline its operations and potentially focus on its core hotel management business. The involvement of Blackstone, a global alternative asset manager, suggests the investment firm sees value in whatever Essendi represents within the hospitality ecosystem. The consortium structure indicates multiple parties may be participating in the acquisition.

The memorandum of understanding signals the start of formal negotiations, with the final deal value potentially reaching the €975 million ceiling. This divestment could provide Accor with capital to reinvest in its primary hotel operations or reduce debt. The transaction underscores the ongoing consolidation and strategic realignment occurring in the global hospitality sector as companies adapt to post-pandemic market conditions.