French hotelier AccorHotels will acquire FRHI Holdings Ltd. -- parent company of three luxury hotel brands: Fairmont, Raffles, and Swissôtel -- from its current owners, the Qatar Investment Authority, Kingdom Holding Company of Saudi Arabia, and Canadian real estate company Oxford Properties, it announced yesterday.
The $840 million transaction will expand AccorHotels' portfolio by 155 hotels comprising more than 56,000 rooms in 34 countries.
"This is an outstanding opportunity to add three prestigious brands -- Fairmont, Raffles and Swissôtel -- to our portfolio, and a great step forward for AccorHotels," said Sébastien Bazin, chairman and CEO of 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."
Upon completion of the acquisition, Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia will become major shareholders in AccorHotels, with 10.5 percent and 5.8 percent of share capital, respectively.
"The transaction will … enable the group to consolidate its shareholder base, with the arrival of two high-profile investors that both have extensive expertise in the hospitality industry," Bazin continued. "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."