Multiple-brand hospitality firm AccorHotels of France recently acquired Toronto-based FRHI Hotels & Resorts, with the transaction including a stock trade and boosting its Middle East portfolio with 150 extra hotels offering over 45,000 guest rooms.
The deal added hospitality entities Fairmont, Raffles and Swissotel to Accor’s holdings and included a stock exchange with Qatar Investment Authority (QIA) and Kingdom Holding Company (KHC), whose representatives now hold seats on Accor’s board as well as gaining 10.4 percent and 5.8 percent holdings in the firm, respectively.
AccorHotels Chairman and CEO Sébastien Bazin welcomed the new shareholders — both previous shareholders in FRHI — deeming the company poised to gain from the investors’ know-how and stating that the “two renowned investors … are great specialists of the global hotel sector.”
Spokespersons from QIA and KHC said that the acquisition will likely position AccorHotels as a leader in the luxury hospitality industry. Accor anticipates netting approximately $71 million in revenue as well as expanding its customer base, which currently includes three million existing “loyalty” members, primarily from North America.
To shore up the transition and support the expanded holdings, Accor has appointed Chris Cahill as the group’s CEO of Luxury Brands in a newly created role.