Fairmont Raffles acquired by AccorHotels for $2.7 billion
AccorHotels have now finalised their purchase of Fairmont Raffles Hotels International (FRHI) the parent company to Raffles, Fairmont and Swissôtel to the tune of $2.7 Billions USD.
FRHI was formed in 2006 and was previously owned by Qatar Investment Authority (QIA) and it has over 155 properties in 34 countries worldwide. The luxury brand include such prestigious hotels as the Savoy in London, Fairmont San Francisco and Raffles Singapore. Industry critics are saying that this now positions AccorHotels in the luxury hotel market.
CEO and Chairman of AccorHotels Sébastien Bazin, says “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.
“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 deal will consist of payments of $840 million USD and 46.7 million Accor shares. The deal will give QIA and the Kingdom Holding Company of Saudi Arabia 10.4% and 5.8% in Accor’s share capital respectively.