Accor and South African group Southern Sun Hotels formed the Hotel Formula 1 budget chain in South Africa as a joint venture in 1991.

This week, Accor announced that it has sold its 52.6% stake in the chain to Southern Sun under a sale-and-franchise-back deal for €28 million; €25 million of this sum is attributable to Accor's stake in the chain and the remaining €3 million is a refund of a loan made by Accor to the venture.

Hotel Formula 1 currently owns 20 hotels (1,474 rooms) across South Africa and manages three properties owned by Southern Sun. All 23 hotels will now be operated under franchise agreements.

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