AccorHotels has announced the signing of an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System (OMERS) company, for the acquisition of FRHI Holdings (FRHI), the parent of Fairmont, Raffles, and Swissôtel.
Speaking of the acquisition, which is subject to regulatory approval, was chairman and CEO, AccorHotels, Sébastien Bazin: “This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel – to our portfolio, and a great step forward for AccorHotels. It offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability, for long term value creation. In addition, 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.”
CEO, QIA, HE Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani said: “Since making our investment, Fairmont Raffles Hotels International has become a leading luxury hotel company with an expanded international presence. This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments. QIA has confidence in AccorHotels and looks forward to becoming a significant shareholder.”
FRHI includes three of the most prestigious global luxury hotel brands: Raffles, Fairmont and Swissôtel and the acquisition of these three global brands is set to strategically enhance AccorHotels’ brand portfolio, and will provide AccorHotels with a better-balanced business profile. The integration of Raffles, Fairmont and Swissôtel will broaden the group’s geographic footprint in the luxury segment, and enable it to optimise its luxury and upscale brands in order to adapt its offering to the expectations of an increasingly demanding clientele.