AccorHotels buys three BIG hotel brands

AccorHotels has just taken one leap forward in business by adding three major hotel brands to its portfolio – Fairmont, Raffles and Swissotel.

Announced this morning, the purchase makes the group a global leader in the luxury hotels sector with some 155 hotels and resorts under its belt as well as 40 still in development.

While AccorHotels will own the brand, two Middle Eastern companies – Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia – will purchase some 46.7 million new Accor shares, making them major shareholders with 10.5 percent and 5.8 percent of the share capital.

AccorHotels, Chairman & CEO, Sébastien Bazin said the acquisition demonstrates the fast-changing industry and will help make the group a ‘key player’ in the market.

“[It] will allow us to more effectively support our guests, clients and hotel owners.”

Sébastien Bazin, AccorHotels Chairman & CEO

As part of the acquisition, AccorHotels will properties in 34 countries across five continents, with 42 properties in North America, two in South America, 26 in Europe, 17 in Africa/Middle East and 28 in Asia-Pacific. They are located in the world’s major tourist destinations, particularly in the United States, the leading outbound travel market.

This transaction is subject to the regulatory approvals of the antitrust authorities. Rothschild and Zaoui & Co are acting as financial advisors and Darrois Villey Maillot Brochier and Proskauer Rose LLP are acting as legal advisors to AccorHotels on this transaction. Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are acting as financial advisors and McCarthy Tetrault LLP and White & Case LLP are acting as legal advisors to FRHI on this transaction.

What do you think of the acquisition?