French hotel chain AccorHotels will acquire FRHI Holdings Ltd, the parent company of Fairmont, Raffles, and Swissôtel, in a deal worth approximately $2.9 billion US.
The three FHRI brands – owned jointly by the Qatar Investment Authority, Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, the real estate division of the Ontario Municipal Employees Retirement System (OMERS) – boast a total of 155 hotels and resorts (of which 40 are under development), and more than 56,000 rooms (of which approximately 13,000 are under development).
The deal, which is still subject to approval, will see AccorHotels acquire a number of iconic properties including The Savoy in London and New York’s Plaza Hotel; among the Canadian properties are the Fairmont Banff Springs and Fairmont Le Château Frontenac. The acquisition of FHRI will also see its three million loyalty members (75 per cent of which are in North America) integrated within AccorHotels’ customer base.
AccorHotels’ current portfolio includes 3,800 international properties, operating under brands including Ibis, Sofitel and Novotel.