AccorHotels broadens luxury portfolio in Middle East
Following a general shareholders meeting, AccorHotels Group has revealed the acquisition of FRHI Hotels & Resorts (FRHI) and its three prestigious luxury hotel brands: Fairmont, Raffles and Swissôtel. This addition of three famous brands instantly positions AccorHotels as a leading player in the global luxury hotel market.
The acquisition means that AccorHotels will have 150 hotels - in operation and under management - in the Middle East region.
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, commented: “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.
"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. 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 meeting, 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 percent and 5.8 percent 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.
Read the July 2016 issue of Business Review Middle East magazine