AccorHotels has officially sealed the deal and acquired FRHI Hotels and Resorts in a mega-merger that will see luxury brands Fairmont, Raffles and Swissotel join Accor’s existing portfolio.
The acquisition now means that AccorHotels will have 150 hotels – in operation and under management – in the Middle East region, presenting more than 45,000 rooms across the luxury and economy segments. 
“Today is a great day for our group. 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. Said Sébastien Bazin, chairman and chief executive officer of AccorHotels.
Joining AccorHotels’ global network is a portfolio of globally admired brands, which includes management of many of the world’s most iconic and historic hote including: The Savoy in London, Raffles Singapore, Fairmont San Francisco and New York’s The Plaza.
“We remain committed to providing guests with unparalleled service, while also keeping the ambition to deliver exceptional return on investment for our shareholders and hotel owners,” added Bazin. “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.”
Following the approval of shareholders at the General Shareholders Meeting on July 12, 2016, 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 with AccorHotels planning to generate approximately €65 million in revenue and cost synergies due to the combination of brands.
