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.
