AccorHotels to acquire Fairmont, giving luxury portfolio big boost
AccorHotels said Wednesday that it will FRHI Holdings, parent of the Fairmont, Swissotel and Raffles hotel brands, for about $2.9 billion.
Paris-based Accor is acquiring FRHI from Qatar Investment Authority, Saudi Arabia’s Kingdom Holding Company and Oxford Properties.
The transaction, slated to close by next June, will double Accor's number of luxury hotels. FHRI oversees 114 hotels (70 Fairmont, 32 Swissotel and 12 Raffles). FHRI has another 40 hotels in the development phase.
Accor's luxury brand, Sofitel, has 111 hotels. The company has 99 hotels under the Pullman upper-upscale brand. Accor has 3,800 properties worldwide, largely under the Ibis and Mercure economy brands.
The acquisition “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,” Accor CEO Sebastien Bazin said in a statement. “We are positioning ourselves as a key player in the current industry consolidation process while maintaining substantial leeway to implement our transformation plan.”
Accor will pay about $2.1 billion in Accor stock and $840 million in cash. The company trades on the Paris Stock Exchange.
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