AccorHotels has acquired three iconic hotel brands, Fairmont, Raffles and Swissôtel.
The properties, under parent company FRHI Holdings Ltd, comprise 155 hotels and resorts, 40 of which are under development.
The acquisition has been made in a bid to establish Accor as a leader in luxury hotels, and includes prestigious properties such as Raffles Singapore, The Savoy in London, Shanghai’s Fairmont Peace Hotel and The Plaza Hotel in New York.
The group will now focus on growing its presence in North America and providing a stronger platform on which to continue the brand’s aggressive worldwide expansion.
Accor paid for the hotels with a cash payment of £554m as well as issuing 46.7m new Accor shares to Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System (OMERS).
Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia are to become major shareholders, with 10.5% and 5.8% of the share capital respectively.
Sébastien Bazin, chairman and chief executive officer of AccorHotels said: “This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel – to our portfolio, and a great step forward for AccorHotels.”
FRHI’s hotels and resorts span 34 countries across five continents, with 42 properties in North America, 2 in South America, 26 in Europe, 17 in Africa/Middle East and 28 in Asia-Pacific.
The vast majority of hotels (108) 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.
The acquisition of the brands Fairmont, Raffles and Swissôtel, alongside the group’s own brands of MGallery, Pullman, Grand Mercure, the Sebel and Sofitel will take Accor’s presence in the luxury and upscale sector to 500 hotels worldwide.