“F ollowing the approval of shareholders at the General Shareholders Meeting on July 12, 2016, AccorHotels Group officially announces the acquisition of FRHI Hotels & Resorts (FRHI) and its three prestigious luxury hotel brands: Fairmont, Raffles and Swissôtel”, according to this official press release. “This addition of three remarkable brands instantly positions AccorHotels as a leading player in the global luxury hotel market, increases long term growth potential and profitability, and significantly expands the company’s footprint in North America, the world’s largest and most influential consumer market.”
AccorHotels Acquisition of Fairmont, Raffles and Swissôtel Completed Today
AccorHotels Group — which had approximately 3,800 properties in 92 countries prior to the consummation of this deal under such brands as Sofitel, Novotel, Mercure and Ibis — agreed to acquire Fairmont, Raffles and Swissôtel back in December of 2015 by issuing 46.7 million new Accor shares and a cash payment of $840 million. The Fairmont, Raffles and Swissôtel brands employ greater than 45,000 colleagues worldwide and includes approximately 56,000 rooms at 154 hotel and resort properties in 34 countries on five continents.
This strategic deal is the result of the signing of an agreement with the Qatar Investment Authority; Kingdom Holding Company of Saudi Arabia; and Oxford Properties, an Ontario Municipal Employees Retirement System company for the acquisition of FRHI Holdings Ltd, which is the parent company of the Fairmont, Raffles, and Swissôtel brands. Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia are to become major shareholders, with 10.5 percent and 5.8 percent of the share capital respectively.
As a result of this acquisition, AccorHotels — which is based in France — will not only have a larger presence in North America; but it will also be a key player in the luxury and upscale hotel property segment of the lodging industry.
New Chief Executive Officer of AccorHotels Luxury Brands Named
To strengthen and support its luxury and upscale business, the company has appointed Chris Cahill as the chief executive officer of luxury brands for AccorHotels Group. Cahill will lead the integration process of FRHI Holdings Ltd into the AccorHotels portfolio and be responsible for the strategy and global operations of AccorHotels Luxury Brands — which will include Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel.
“Combining FRHI’s proven track record and deep expertise in operating and marketing luxury hotels, with AccorHotels robust global operating platform, extensive loyalty base and industry leading digital capabilities, means the Group is uniquely positioned to deliver the most profitable returns and best growth potential across all market segments.”
Key Hotel and Resort Properties
Key hotel and resort properties which are now part of the worldwide portfolio of AccorHotels Group include:
- Raffles Singapore
- The Savoy in London
- Fairmont Peace Hotel in Shanghai
- The Plaza Hotel in New York
- Le Royal Monceau – Raffles Paris
- Fairmont San Francisco
- Fairmont Banff Springs in Canada
- Fairmont Le Château Frontenac in Quebec
- Fairmont Grand Del Mar in San Diego
- Swissôtel The Stamford in Singapore
Summary
There is still no official word at this time as to how Le Club Accorhotels — the frequent guest loyalty program — will look now that the acquisition has been completed.
More mergers and acquisitions may be possible in the future, as this deal will “provide a stronger platform to continue aggressive worldwide expansion” for AccorHotels Group in what portends to be further consolidation of the lodging industry worldwide.
Source: AccorHotels.
