Paris-based AccorHotels has finalized the acquisition of FRHI Hotels & Resorts and its three luxury hotel brands, Fairmont, Raffles and Swissôtel. The addition of the brands gives AccorHotels, already a prominent player in the global hotel market, immediate cache in the luxury segment, and increases the company's footprint in North America.
"Today is a great day for our group," said Sébastien Bazin, chairman and CEO of AccorHotels, in a statement announcing the deal. "The acquisition of these three emblematic luxury hotel brands is a historical milestone for AccorHotels. It will open up amazing growth prospects, lift our international presence to unprecedented heights and build value over the long term."
Among the iconic hotels that now fall under AccorHotels' global portfolio are the Savoy in London, the Raffles Singapore, the Fairmont San Francisco, the Plaza in New York City, the Fairmont Le Château Frontenac in Quebec and Le Royal Monceau Raffles Paris. The majority of Fairmont, Raffles and Swissôtel's 154 hotels and resorts (including 40 that are under development) are operated under long-term management contracts.
While today's announcement did not state the financial details of the acquisition, AccorHotels had announced back in December 2015 that it was purchasing the group for US$2.9 billion.
"We remain committed to providing guests with unparalleled service, while also keeping the ambition to deliver exceptional return on investment for our shareholders and hotel owners," added Bazin. "By leveraging the operational synergies between FRHI and AccorHotels, we are well-positioned to accelerate the growth of our luxury brands and offer guests even more exciting hotel choices and destinations to explore."
Chris Cahill, COO of FRHI, will become AccorHotels' CEO of luxury brands, a new position, and will oversee the strategy and global operations of all of AccorHotels luxury brands, including Accor's Pullman and Sofitel flags. Cahill also will become a member of AccorHotels' executive committee, which will oversee the FRHI integration process.