AccorHotels acquires FRHI Hotels & Resorts

AccorHotels has completes its acquisition of FRHI Hotels & Resorts, which includes Raffles Hotel Singapore as one of the most famous properties in the deal. The deal sees three prestigious luxury hotel brands – Fairmont, Raffles and Swissôtel – move into the AccorHotels stable. The move significantly expands the company’s footprint in North America, the world’s largest and most influential consumer market, the company said in a statement. “Today is a great day for our group. The acquisition of these three emblematic luxury hotel brands is a historical milestone for AccorHotels. It will open up amazing growth prospects, lift our international presence to unprecedented heights, and build value over the long term,” said Sébastien Bazin, chairman, AccorHotels. AccorHotels’ global network includes The Savoy in London, Raffles Singapore, Fairmont San Francisco, New York’s The Plaza, Fairmont Le Château Frontenac in Quebec City, and Le Royal Monceau Raffles Paris. “We remain committed to providing guests with unparalleled service, while also keeping the ambition to deliver exceptional return on investment for our shareholders and hotel owners,” added Bazin. “By leveraging the operational synergies between FRHI and AccorHotels, we are well-positioned to accelerate the growth of our luxury brands and offer guests even more exciting hotel choices and destinations to explore.” Following the approval of shareholders at the meeting, the transaction with Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia provided $840 million cash payment and the issuance of 46.7 million AccorHotels shares in consideration for the contributed FRHI shares. AccorHotels plans to generate approximately US€65m in revenue and cost synergies thanks to the combination of brands.