Accorhotels acquires classic hotel chains Fairmont, Raffles and Swissôtel

The luxury hotel industry is a key segment in terms of geographic reach, growth potential and profitability in the long term. Fairmont Raffles Hotels International (FRHI) have an unrivalled hotel portfolio in the luxury segment and significant operations in North America, giving Accorhotels a strong platform to continue its rapid global expansion, according to a press release.

• “This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel – to our portfolio, and a great step forward for AccorHotels. It offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability, for long term value creation. In addition, the deal allows us to strengthen our human capital with FRHI’s widely respected and talented global workforce which has a proven track record in operating and marketing luxury hotels. This major acquisition demonstrates the Group’s agility in a fast-changing industry and will allow us to more effectively support our guests, clients and hotel owners. Through it, we are positioning ourselves as a key player in the current industry consolidation process while maintaining substantial leeway to implement our transformation plan,” said Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels.

Accorhotels acquires FRHI Holdings Limited from the current owners Qatar Investment Authority, Kingdom Holding Company of Saudi Arabia, and Oxford Properties. Accorhotels will pay for the acquisition by issuing 46.7 million new shares and paying EUR 768 million. Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia are to become major shareholders in Accorhotels, with 10.5 percent and 5.8 percent of the share capital respectively.