Accor completes takeover of FRHI Hotels & Resorts
Sunday, 13 Jul, 2016
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The Raffles, Fairmont and Swissôtel brands have joined the Accor portfolio after the French hospitality giant finally completed the acquisition of FRHI Hotels & Resorts.
The $2.9 billion cash plus shares deal gives FRHI shareholders Qatar Investment Authority and Kingdom Holding Company a respective 10.4% and 5.8% in Accor stock.
They were also paid $840 million in cash as part of the transaction.
"It 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, CEO of AccorHotels.
There is likely to be some consolidation now in the expanded brand portfolio, especially in the luxury segment.
Accor says it has identified the equivalent of €65 million in ‘revenue and cost synergies.’
This will be led by Chris Cahill, who has been appointed to the newly created position of CEO of luxury brands.
He will oversee the integration of the three new brands alongside Accor’s existing luxury portfolio which includes Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel and Pullman.
Now that the deal is completed, AccorHotels’ North American portfolio has increased from 16 to 56 properties.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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