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AccorHotels AccorHotels

AccorHotels Acquires Fairmont, Raffles and Swissotel

AccorHotels revealed its intention to purchase FRHI Holdings, creating a worldwide leader in the luxury segment.

The move follows an agreement signed between the hotelier and Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System company for the acquisition of the parent firm of the Fairmont, Raffles and SwissĂ´tel brands.

The addition of 155 hotels and resorts with over 56,000 rooms combined will strategically enhance the brand portfolio and provide the group with a better balanced business profile.

AccorHotels aims to generate around EUR65 million (USD71.2 million) in revenue and cost synergies thanks to the combination of brands, the maximisation of hotel earnings, the increased efficiency of marketing, sales and distribution channel initiatives and the optimisation of support costs.

The deal provides for the cash payment of USD840 million and the issuance of 46.7 million shares, leaving QIA and KHC respective stakes of 10.5 percent and 5.8 percent in AccorHotels' share capital.