Accor to Acquire Fairmont, Raffles, Swissôtel Chains
Accor, the largest hotelier in Europe, announced plans to acquire FRHI Hotels and Resorts on Wednesday for $2.9 billion in cash and stock. FRHI is the owner of the Fairmont, Raffles, and Swissôtel chains.
The acquisition, subject to regulatory approval, said the purchase would give Accor 115 additional luxury hotels plus 40 that are currently under developing, thereby creating a “worldwide leader in the luxury segment.”
The deal, which was not unexpected, comes on the heels of the mid-November announcement by Marriott to acquire Starwood, thereby forming the world’s largest hotel group.
Accor will pay Qatar Investment Authority and Kingdom Holdings $840 million in cash plus 46.7 million new shares, making the two among Accor’s largest shareholders.
Once the deal closes, Accor will have close to 500 luxury hotels, including the Plaza in New York, the Raffles hotel in Singapore, and the Savoy in London. It will also significantly increase Accor’s footprint in North America.
(Photo: Accura Media Group)