AccorHotels has signed an agreement to acquire FRHI Holdings (FRHI), the owner of luxury hotel brands Fairmont, Raffles and Swissotel, for approximately €2.6bn ($2.9bn).
The deal has been signed with the Qatar Investment Authority (QIA) and Kingdom Holding Company (KHC) of Saudi Arabia.
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AccorHotels will give $840m in cash and 46.7 million in new Accor shares to the QIA and KHC. Upon completion of the transaction, QIA will have a 10.5% stake in Accor while KHC will own 5.8%.
The French hospitality company expects the acquisition to provide robust and global leadership in luxury hotels, in addition growth potential and profitability.
AccorHotels chairman and CEO Sébastien Bazin said: "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.
"The transaction will also 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.
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By GlobalDataAccorHotels owns nearly 500 luxury and upscale properties.
It expects the acquisition of three global brands to strengthen its brand portfolio, and providing a more balanced business profile.
Qatar Investment Authority CEO Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani said: "This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments."
The transaction is subject to the regulatory approvals of antitrust authorities.
FRHI owns 155 hotels and resorts, which are located in 34 countries across five continents.
Its portfolio includes Raffles Singapore, The Savoy in London, Shanghai’s Fairmont Peace Hotel, and The Plaza Hotel in New York.
Image: AccorHotels expects the acquisition of three global brands to strengthen its brand portfolio. Photo: courtesy of AccorHotels.
