Accor Finalizes $2.7 Billion Purchase of Fairmont Raffles
Photo Credit: The Savoy in London is one of Fairmont's most iconic properties. Fairmont Raffles Hotels International
Skift Take
AccorHotels is making some smart, strategic moves, whether it's buying up luxury alternative accommodations provider Onefinestay or adding these three storied luxury brands to its hotel collection.
AccorHotels today finalized its purchase of Fairmont Raffles Hotels International (FRHI), the Toronto-based parent company to the Fairmont, Raffles, and Swissôtel brands, for $2.7 billion.
The acquisition of privately owned FRHI, which has more than 155 properties around the world, was approved by Accor shareholders in a special meeting held at Accor's Paris headquarters and the deal consists of payment in both $840 million in cash and 46.7 million shares of Accor, totaling nearly $3 billion.
FRHI was formed in 2006 and was previously owned by the Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia as well as Oxfrod Properties, an Ontario Municipal Employees Retirement System company. As part of the deal with Accor, both of those entities are now major shareholders of Accor (10.5 percent for Qatar and 5.8 percent for Kingdom) and will add three new representatives to the Accor board.
Why Accor Bought FRHI
Accor first announced the FRHI acquisition in Dece
