AccorHotels has signed an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) and Oxford Properties that will see the French group acquire FRHI Holdings Ltd, the parent company of the luxury Fairmont, Raffles and Swissôtel brands. Accor will issue 46.7 million new Accor shares to pay for the deal along with a cash payment of €768 million. QIA and KHC will become major shareholders, with stakes of 10.5% and 5.8%, respectively. The three brands comprise 115 hotels and resorts (more than 56,000 rooms) in operation and 40 properties under development (around 13,000 rooms) in major tourist destinations across 34 countries in five continents. This acquisition now enables AccorHotels to truly present a full range of hotel brands, from budget/economy to luxury, in a more emphatic manner. Commenting on the purchase, Sébastien Bazin, the Group’s Chairman and Chief Executive Officer, said, “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.”
HVS EMEA HOSPITALITY NEWSLETTER.