In a $2.8 billion deal, French hospitality company Accor SA is acquiring the Fairmont, Raffles and Swissotel luxury hotel brands.
Europe’s biggest hotel operator will pay 46.7 million new shares and $840 million in cash for FRHI Holdings Ltd., Accor said in a statement yesterday. Accor’s buying the company from Qatar Investment Authority, Prince Alwaleed Bin Talal’s Kingdom Holding Co. and Oxford Properties Group Inc.
Accor chief executive officer Sebastien Bazin said that the deal “offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability. We are positioning ourselves as a key player in the current industry consolidation process.”
Accor operates the Ibis and Sofitel chains and has 3,800 hotels worldwide.