Wednesday 12 August 2020

AccorHotels announces landmark aquisition of FRHI hotels

DUBAI, July 14, 2016

Following the approval of shareholders at a recent meeting, AccorHotels Group has officially announced the acquisition of FRHI Hotels & Resorts and its three prestigious luxury hotel brands: Fairmont, Raffles and Swissôtel.

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.

With this acquisition, AccorHotels will have 150 hotels – in operation and under management - in the Middle East region, presenting more than 45,000 rooms across the luxury to economy segments.

“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 and chief executive officer of AccorHotels.

Joining AccorHotels’ global network is a portfolio of globally admired brands, which includes management of many of the world’s most iconic and historic hotels located in key strategic cities around the world, including: 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.

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.  

“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.”

The transaction with Qatar Investment Authority (QIA) and Kingdom Holding Company (KHC) of Saudi Arabia provided $840 million cash payment and the issuance of 46.7 million AccorHotels shares in consideration for the contributed FRHI shares. The transaction gives QIA and KHC respective stakes of 10.4 per cent and 5.8 per cent in Accor’s share capital.

The shareholders also approved the appointment of six new directors: Aziz Aluthman Fakhroo and Ali Bouzarif, proposed by Qatar Investment Authority, Sarmad Zok, proposed by Kingdom Holding Company, and Jiang Qiong Er, Isabelle Simon and Natacha Valla as independent directors.

Bazin said: “The six new Board members who have been appointed by our shareholders today are bringing tremendous diversity and experience to AccorHotels’ Board. I am convinced that their complementary backgrounds and views will be of great support to continue developing our growth and innovation strategy in the future.”

The changes in the Group’s shareholder structure and in the composition of its Board of Directors are governed by individual shareholder agreements between Accor and each of QIA and KHC setting out the principles and objectives of their individual shareholdings. - TradeArabia News Service

Tags: Fairmont | Raffles | Swissotel | FRHI | AccorHotels |

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