AccorHotels To Acquire Fairmont, Raffles and Swissôtel

AccorHotels will acquire FRHI Holdings Ltd (FRHI), the parent company of Fairmont, Raffles and Swissôtel brands of hotels around the world.

FRHI has 155 hotels and resorts of which 40 are under development. 108 of these hotels are operated under very long-term management contracts with average remaining terms of nearly 30 years. Six hotels are leased and one hotel is owned. It has more than 56,000 rooms of which 13,000 are under development.

FRHI’s properties around the world:

• 42 in North America
• 2 in South America
• 26 in Europe
• 17 in Africa/Middle East
• 28 in the Asia Pacific

Its portfolio includes legendary properties such as the Raffles Singapore, The Savoy in London, Shanghai’s Fairmont Peace Hotel, The Plaza Hotel in New York, Le Royal Monceau – Raffles Paris, Fairmont San Francisco, Fairmont Banff Springs (Canada, Fairmont Le Château Frontenac in Quebec, the Fairmont Grand Del Mar in San Diego and Swissôtel The Stamford in Singapore. FRHI has over 45,000 employees under its brands across 34 countries in five continents.

Integration of these three global brands will strategically enhance AccorHotels’ brand portfolio providing it with a better-balanced business profile as well as broadening the group’s geographic footprint in the luxury segment.

With close to 500 luxury and upscale properties, AccorHotels will be able to offer the most profitable management contracts and the best growth potential in many markets.

AccorHotels aims to generate around €65 million in revenue and cost synergies with the combination of brands, maximisation of hotel earnings, increased efficiency of marketing, sales and distribution channel initiatives and optimisation of support costs.

Integration of the customer base including three million loyalty members of which 75% are North Americans will allow AccorHotels to make significant improvements in its customer data.

The agreement with Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia for the cash payment of US$480 million and the issuance of 46.7 million Accor shares which will be issued via a reserved capital increase, subject to the approval of shareholders at an Extraordinary Shareholders’ Meeting. The transaction will leave QIA and KHC respective stakes of 10.5% and 5.8% in Accor’s share capital subject to regulatory approvals of the antitrust authorities.

I received an email addressed to Fairmont President’s Club with regards to FRHI Hotels & Resorts joining AccorHotels today.

Adrian

Middle aged curious individual trying to find a balance in keeping healthy and finding joy keeping fit. Because trying new food and drink is part of the work.

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