Essendi, has successfully completed the refinancing of its existing Senior and PGE Facilities. This move, which began in 2024, includes the issuance of senior secured notes and the establishment of new senior term loan facilities and a revolving credit facility, totaling €2.2 billions.
The new financing structure consists of three key components : €550 million in senior secured floating rate notes due in 2032, €400 million in senior secured fixed rate notes due in 2030, and €300 million in fixed rate notes due in 2032. Additionally, Essendi has secured €550 million in new senior term loan facilities and a €400 million revolving credit facility. The proceeds from these arrangements were used to repay and cancel Essendi’s previous debt obligations.
This refinancing is part of Essendi’s strategy to improve liquidity, reduce debt costs, and manage debt maturities more effectively. It also reflects the company’s commitment to optimizing its financial structure to support continued growth and stability. Furthermore, Essendi aims to integrate sustainability-linked provisions into its new senior term loan facilities, aligning with the company’s environmental, social, and governance (ESG) goals.
“I am pleased to announce that Essendi has finalized its refinancing journey initiated in 2024 and strengthened its financial structure. With this new €2.2 billion financing, we achieved a key milestone in our transformation roadmap alongside our new identity, confirmed ESG commitments and ongoing portfolio optimization.This transaction further reinforces our debt profile, improves our liquidity and underpins the continued support from banking institutions, as well as investors’ recognition of our positioning and business model.”- Gilles Clavié, CEO of Essendi
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Essendi’s refinancing marks a critical step in its broader transformation strategy, which includes ongoing portfolio optimization and the establishment of strong ESG practices within the hotel industry. The refinancing process was guided by a number of financial institutions, including BNP Paribas, Natixis, and Crédit Agricole CIB, with legal advice provided by Latham & Watkins and Weil, Gotshal & Manges.
Recently the group went through a transformation, with the changing of AccorInvest to Essendi. This transformation didn’t happen instantly, as after the separation from Accor in 2017, AccorInvest tried to refocus and grow on the European market, and then launch a new strategy in 2021, which is now reflected under the name name Essendi.
The approach for the creation of the new identity was focused on participation and inclusiveness. With the active involvement of all the employees, from hotel managers to head office teams, the main goal was to achieve the company’s mission, that was also supported by a specialist agency, Dragon Rouge.
This move reinforces Essendi’s solid financial foundation and its ability to continue leading the European hotel market, particularly in the economy and midscale segments, where it operates over 500 hotels with 20,000 employees across 22 countries and under international brands like ibis, Novotel, and Mercure.
