AccorHotels Group acquired FRHI Hotels & Resorts
(FRHI) and its three hotel brands: Fairmont, Raffles and
The deal means that some of the world’s
most iconic and historic hotels located in key strategic cities
around the world are now part of Accor, including: The Savoy in London, Raffles
Singapore, Fairmont San Francisco, New York’s The Plaza, Fairmont
Le Château Frontenac in Quebec City, and Le Royal Monceau Raffles
The vast majority
of Fairmont, Raffles and Swissôtel’s 154 hotels and resorts (of
which 40 are under development) and 56,000 rooms spanning 34
countries and five continents are operated under long-term
management contracts, with an average term of nearly 30 years; six
hotels are leased and one hotel is owned. The Fairmont, Raffles
and Swissôtel brands employ more than 45,000 colleagues worldwide.
The transaction with Qatar Investment Authority (QIA) and Kingdom Holding Company (KHC) of
Saudi Arabia provided $840 million (€768 million) cash payment and
the issuance of 46.7 million AccorHotels shares in consideration
for the contributed FRHI shares.
The transaction gives QIA and KHC
respective stakes of 10.4% and 5.8% in Accor’s share capital. Ali Bouzarif and Aziz Aluthman Fakhroo from QIA and Sarmad Zok from
KHC will now join AccorHotels’ Board of Directors.
AccorHotels plans to generate approximately €65 million in revenue
and cost synergies thanks to the combination of brands, the maximization of hotel earnings, the increased efficiency of
marketing, sales and distribution channel initiatives, and the optimization of support costs. Significant enhancements will also
be made in terms of customer data, thanks to the integration of FRHI’s customer base that includes three million loyalty members,
of which 75% are in North America.
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,” said Sébastien Bazin,
Chairman and Chief Executive Officer of AccorHotels.
Appointed as Group’s CEO Luxury Brands
In support of the
acquisition, and as part of AccorHotels’ larger strategy to
strengthen its luxury and upscale business, the company has
appointed Chris Cahill as the Group’s Chief Executive Officer,
In this newly created role, Chris, who will also
become a member of AccorHotels’ Executive Committee, will lead the
FRHI integration process and be responsible for the strategy and
global operations of AccorHotels Luxury Brands.
This new structure
will include Raffles, Fairmont, Sofitel Legend, So Sofitel,
Sofitel, MGallery by Sofitel, Pullman and Swissôtel.
is an experienced hotelier who has led several successful
integrations, is familiar with multi-brand management and brings
an extensive background in luxury operations, sales and marketing.
With more than 30 years of hospitality industry experience,
including 19 years working with FRHI and its predecessor
companies, Chris is ideally positioned to lead the integration of
the Fairmont, Raffles and Swissôtel brands into the AccorHotels
portfolio. He most recently served as Executive Vice President
Global Operations at Las Vegas Sands Corp.
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